The rise in short positions amid an overall crypto market recovery highlights Ethereum’s underperformance compared to Bitcoin, which has seen over 100% gains this year. Factors like technology concerns and regulatory uncertainties contribute to negative sentiment around Ethereum.

As of now, Ethereum is trading around 2,500 USD, down 2% in the last 24 hours. The historical correlation between significant short positions and price crashes adds to the apprehension about Ethereum’s future performance.