Bravos Digital Assets: Ethereum Is About to See a Massive Short-Squeeze (Don’t Miss This)

The cryptocurrency space is usually exciting. But over the past few months, the space has drifted lower. And in so doing, it’s fared worse than the overall stock market. Bitcoin is down 25% from its all-time highs.

Meanwhile, other cryptocurrencies can’t seem to catch a break. The second-largest cryptocurrency, Ethereum, has yet to make a new high this crypto cycle. And its overall price is still down more than 50% from all-time levels.

However, that could soon change. Given the lag in other cryptos relative to bitcoin, traders have smelled weakness. They’re exploiting it by shorting other cryptocurrencies, particularly Ethereum given its volume and liquidity.

That means that there’s a massive amount of short interest. Enough that a move higher in Ethereum could kick off a short-squeeze.

A short-squeeze occurs when an asset is heavily shorted and prices start moving higher. As gains become losses, it makes sense to buy back to close the short position. That buying pressure can cause prices to rise substantially and quickly.

Typically, a squeeze lasts until short interest is back to a historical level. And a price move that’s massively higher may see some of those gains decline. But the end result is that prices are far higher than where the short squeeze started.

To see the full rationale for a short-squeeze in Ethereum, click here.