Ethereum Supply Shock May Increase Short Squeeze Potential Amid Record Leveraged Shorts and High Staking Levels
2025-07-14 08:35:28
Main Idea
Ethereum is experiencing a supply shock due to record leveraged shorts and high staking levels, which could lead to increased price volatility and potential short squeezes.
Key Points
1. Ethereum has a record number of leveraged shorts and over 29% of its supply staked, reducing available ETH in circulation.
2. On-chain data shows significant ETH withdrawals from exchanges, tightening liquidity and increasing upward price pressure.
3. Crypto strategist MerlijnTrader predicts ETH could reach $10,000, especially with potential ETF staking approvals by year-end.
4. The current supply shock scenario increases the potential for a bullish price movement but also raises risks of market volatility.
5. ETH has reclaimed the $3,000 level but remains 38% below its all-time high from November 2021.
Description
Ethereum is experiencing a significant supply shock driven by record leveraged short positions and a historic surge in staking, which is drastically reducing its circulating supply. Whale accumulation and substantial
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