Traders rush to short Ether as Grayscale pulls its futures ETF plan – perspective by CoinTelegraph
Ether traders have stacked up their short positions over the last 24 hours, just as Grayscale Investments pulled its application for an Ethereum futures exchange-traded fund (ETF).
Ether is hovering close to a key support level at $3,010, having dropped by 1.85% over the past 24 hours, according to CoinMarketCap data.
However, liquidation maps show traders have more conviction that the price is going down in the near term — with $345 million in short positions set to liquidate if the price goes up by 3%.
On the other hand, a 3% drop to $2,920 would only wipe $237 million in long positions.
It comes after Grayscale’s May 7 decision to withdraw its Ether futures ETF application, just three weeks before the United States Securities and Exchange Commission (SEC) was set to decide on it.
It also comes amid speculation on whether Ether could be classified as a security and the fate of spot Ether ETF applications later in May.
Despite optimism earlier in the year, analysts are becoming increasingly doubtful about the chances of the SEC approving a spot Ether ETF as the next May 23 deadline approaches.
