Ether Short Positions Rise 13,000% Near Potential $2,800 Supply Zone

Ether (ETH) short positions rose about 13,000% over roughly two weeks, increasing the amount of the asset tied to bearish trades as ETH approached a potential supply zone between $2,722 and $2,822.

The positions grew from slightly more than 771 ETH to above 101,000 ETH. More than 13.3 million ETH changed hands across the cited price range, while ETH fell about 1.5% during the week after moving above $2,800 the previous week.

A sustained move above the $2,800 area could pressure short sellers to buy ETH to close their positions. Those purchases can add demand during a rising market, but the increase in short positions does not establish that a short squeeze has begun or that ETH is moving toward $3,000.

The $2,722-to-$2,822 range remains a potential supply zone for Ether. Continued rejection in that area would leave the potential bear-trap scenario unconfirmed.

About 43.5 million ETH was staked, representing 35.66% of supply, on Sept. 28. Staked ETH is committed to Ethereum’s proof-of-stake system and is not immediately available for ordinary market trading.

The next market test is whether Ether can move above the $2,800 area. A failure to hold above that level would leave the potential short-squeeze scenario unresolved.