Golden Finance reports that the analysis of the cryptocurrency market has once again received a major viewpoint. JackYi, the founder of LD Capital and a well-known whale, posted his extremely optimistic prediction on the price trend of ETH on the social platform X, elaborating on the concise yet powerful logic behind the bullish trend of ETH.
JackYi pointed out that the current short position scale of ETH in the market is huge and the situation is severe. Specifically, the value of short positions in ETH on CME is as high as 1.3 billion US dollars, the value of short positions on the AAVE platform is 1 billion US dollars, and the total value of short positions aggregated across all trading platforms is approximately 3 billion US dollars. Overall calculation shows that approximately 5 billion US dollars of ETH short positions in the market are facing a huge short squeeze risk. He believes that once the market triggers a short squeeze, this will become a powerful driving force for the soaring price of ETH. According to his prediction, the price of ETH is highly likely to break through the $3,000 mark, and even in an extremely optimistic scenario, it may reach the range of $3,500 to $4,000. This is also the core reason why he firmly holds 100,000 ETH call options.
Looking back at the layout of LD Capital and its founder JackYi in the cryptocurrency market, they had previously demonstrated a strong optimism towards ETH. The Trend Research team under LD Capital has been openly bullish on ETH. As of now, the team holds 142,000 ETH, with a floating profit amount as high as 42.35 million US dollars. The Trend Research team disclosed that this round of investment began to build positions and go long when the price of ETH was at $1,400. When the price climbed to $1,800, the team wrote research reports and became the vanguard force among institutions that was the first to publicly be bullish on ETH across the entire network.
From a market perspective, the Ethereum ecosystem has developed rapidly in recent years. As the world’s largest smart contract platform, Ethereum has continuously advanced technological upgrades, such as the iteration process of Ethereum 2.0, aiming to enhance network performance and reduce transaction costs. This has attracted the participation of an increasing number of developers and users, and the ecosystem construction has been constantly improved. This lays a solid foundation for the value enhancement of ETH. In addition, as the cryptocurrency market gradually matures, institutional investors’ attention to ETH is increasing day by day, and funds are continuously flowing into the Ethereum ecosystem, which also provides strong support for the rise in ETH prices.
However, the cryptocurrency market has always been fraught with uncertainties, and its price trends are influenced by a combination of multiple factors, including the macroeconomic environment, changes in regulatory policies, and fluctuations in market sentiment. Although JackYi made an optimistic prediction based on the logic of short selling, the market is ever-changing. Investors still need to remain rational, carefully assess risks, and closely monitor market dynamics to deal with potential market fluctuations.
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