I have seen that some major short sellers are heavily betting against Ethereum lately. One of them, according to the latest rumors, is aggressively shorting ETH. It's interesting to note how analysts are starting to talk about concrete risks, especially the phenomenon of the suicidal spiral in crypto markets.



Tom Lee and others have pointed out that if the price drops too quickly, it could trigger cascading liquidations, which in turn accelerate the fall further. It's the classic domino effect that everyone fears when short sellers sell short en masse. The dynamic is simple but dangerous: the more people get liquidated, the more downward pressure accumulates.

It's not certain that it will happen, but the fact that smart money is already shorting and warning about these risks makes me think. The Ether market remains volatile, and those looking to speculate on the downside continue to short. We will see how the market reacts in the coming days.
ETH0.27%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin