- The Kobeissi Letter has disclosed that the recent performance of Ethereum (ETH) has seen net short exposure reaching an all-time high.
- Ethereum is also expected to sustain this momentum to reach $4,000 as institutional investors get involved.
In a previous analysis, CNF discussed Ethereum’s (ETH) potential to hit $3,000 and its ability to target the $4,000 level soon. In that report, we predicted that the asset could easily take the market by storm once it breaches the $2,700 level decisively.
At that time, ETH held above the $2,500 price point while declining from 70 to 66 on the Relative Strength Index.
Today, ETH has successfully “cleared” most available hurdles to trade above $3,600. Not just that. It has also recorded an impressive run of 44% on its monthly price chart, rising from $2,116 within the period.
Update on Net Leverage Short on Ethereum (ETH)
Commenting on this resounding performance, The Kobeissi Letter, a popular commentator in global capital markets, highlighted that ETH has added a staggering $150 billion in market capitalization since July 1.
In an X thread, the Kobeissi Letter explained that there has also been a historic short squeeze since the beginning of the month, with much of it being institutional capital.
The post also reveals that the net short exposure was significantly high when heading into July. Specifically, it was around 25% up from the level witnessed in February 2025.
Fueling the “already raging short-squeezed fire”, President Donald Trump’s World Liberty Financial (WLF) was reported to have added $5 million worth of ETH in the last 24 hours. This is different from the 14,403 ETH previously purchased by the company.
According to The Kobeissi Letter, another 10% surge in ETH’s price could see another $1 billion of shorts being liquidated.
What About Bitcoin and Other Altcoins?
A similar explosive rally has also been witnessed in other top assets, including XRP and Bitcoin. According to the market commentator, about $900 billion of market cap has been added by Bitcoin since April. Meanwhile, the market is yet to price in other bullish developments. One of them is the recent report that Trump could soon sign an executive order to permit 401(k) retirement plans to invest in crypto.
The Kobeissi Letter also believes that this could be massive as the US 401Ks had a whopping $8.7 trillion “under its belt” in the first quarter of 2025 (Q1 2025).
Apart from this, the market was reported to have not yet priced in the passage of three key Bitcoin and crypto bills, which were recently detailed in our publication. The Clarity Act, the Genius Act, and the Anti-CBDC Act were said to be a huge win for the industry.
In the long run, ETH is expected to wrap up the cycle with a peak price of more than $10k. As explained in our earlier coverage, an analyst argues that ETH could repeat the 2017 cycle and rise by 26,000%. However, Standard Chartered analysts believe that a more conservative estimate should be considered. As indicated in our earlier news story, they have revised their $10k projection to $4k.
Recommended for you:
Credit: Source link
