Ethereum Shorts Take a $152 Million Hit as Price Surges
Ethereum traders betting against the cryptocurrency got burned badly Wednesday as ETH’s price climbed nearly 9% in 24 hours. Over $152 million in short contracts were liquidated—more than half of the $251 million total crypto shorts wrecked in the same period. Bitcoin, by comparison, saw just $34 million in liquidations despite its milder 1.6% rise.
The numbers paint a messy picture. ETH’s jump to around $3,330 came as two unnamed companies reportedly stacked more of the asset into their reserves. There’s also chatter about growing confidence in Ethereum’s network utility, though no one’s quite sure what’s driving the momentum.
Regulatory Whiplash and Trading Chaos
Patrick Gruhn, who used to run FTX Europe and now heads Perpetuals.com, thinks Ethereum’s sensitivity to regulatory noise might be fueling the volatility. “This unpredictability has likely contributed to volatility in the crypto markets, evidently primarily for Ethereum,” he said. He pointed to recent legislative drama—bills like the Crypto GENIUS Act flopped, then somehow passed in a last-minute House scramble.
Bitcoin, at least, had clearer rules earlier. Ethereum’s role as the go-to smart contract platform means it’s constantly in regulators’ crosshairs. That uncertainty might explain why traders are getting squeezed harder here than with BTC.
Volume and Open Interest Tell a Story
Ethereum trading volume spiked 15% to $132 billion in a day, outpacing Bitcoin’s $109 billion. Open interest—basically the number of unsettled futures contracts—jumped 9%. Glassnode analysts noted ETH was the only top-10 asset (stablecoins aside) with rising futures volume, up 27%.
“Open interest is also up 6%,” they posted, adding that funding rates staying neutral suggests new positions without reckless leverage. In plainer terms: people are jumping in, but not going all-in on crazy bets.
Greg Magadini from Amberdata pointed out that ETH’s funding levels spent months in negative territory, meaning shorts dominated. Now, with neutral funding, the mood might be shifting.
The “ETH Szn” Narrative Gains Steam
BitMEX founder Arthur Hayes is all-in on the idea that Ethereum’s moment has arrived. His Maelstrom Fund plans to scoop up top DeFi projects, betting they’ll surge if ETH keeps rising. Whether that’s hype or foresight, well—time will tell.
For now, the data shows one thing clearly: betting against Ethereum this week was a costly mistake. And with open interest climbing, the rollercoaster probably isn’t over yet.
