Analysis: The main force behind this round of Ethereum shorting is suspected to be a hedge fund.

BlockBeats news, on August 20, Ethereum recently surged to nearly $5,000, triggering a wave of rising market. However, this level could not be broken as sellers regained dominance, pushing the price back down. A significant portion of the downward pressure seems to come from large hedge funds, which continue to short this second-largest crypto asset at a record scale. When the price of Ethereum stood above $4,000, short positions also increased, with many anticipating a weakening of upward momentum. A large number of short orders are dominated by large hedge funds, exacerbating the downward pressure on Ethereum. This is not the first time, as hedge funds have been trying to suppress ETH prices to reduce their own losses. According to The Block's "CME Ether Futures Net Position" dashboard, these short data have already reached an all-time high. Among hedge funds alone, short positions nearly doubled in August. Data shows that the scale of Ethereum short positions dominated by hedge funds was $2.3 billion on August 5. However, in the latest report, this figure quickly grew to $4.19 billion, indicating that hedge funds are still betting on a decline in ETH prices. In contrast to hedge funds, asset management companies remain relatively optimistic about Ethereum. Data shows they continue to hold over $1.22 billion in long positions. Although this scale is considerable, it is still below the short positions, indicating that shorts still dominate. Undisclosed positions remain long at $77.5 million. Meanwhile, investors classified as "others" (typically including retail investors, etc.) hold short positions of $397.5 million, adding more downward pressure to the market. For hedge funds, an increase in ETH prices means losses, while a decrease means profits. However, with short positions at an all-time high, historical trends indicate that such periods often trigger short squeezes, potentially driving prices to a new round of rises.