Traders are betting ether’s plunge isn’t over yet.
Ether short positions on Bitfinex, a top five spot exchange in terms of volume according to CoinMarketCap, are at the highest level since March 2019.
The spike in short volume comes on the heels of a 14-day streak during which ethereum’s price nearly doubled, breaking through $1,000 and climbing to just 8% away from its all-time high, only to plunge 23% in the last two days. Short sellers are piling on this correction.
ETH is still up nearly 600% in the past year.
No Need to Panic
There may not be a need for ether holders to panic. The last time Bitfinex’s ETH shorts were at comparable or higher levels was in Q4 of 2018 through Q1 of 2019. ETH price gained 3% in the following three months.
Additionally the increase in short selling has come at a time when total ETH options’ open interest has approximately doubled in the last month according to Skew.
The climb in Bitfinex’s ETH shorts could be partially due to a more mature options market as a whole.
Regardless of the reason, traders are certainly buying shorts, as, at least in the short term, the bullish calls for a $10K ethereum have gone silent.