10x Research, an influential crypto analysis firm led by founder Markus Thielen, has advised traders to short Ethereum amid heightened market volatility, citing structural uncertainties and bearish sentiment. The firm recommends a long Bitcoin, short Ethereum strategy as an effective hedge to protect gains, with Thielen emphasizing, "Short Ethereum due to structural uncertainty and asset flow signals."
Key factors driving this recommendation include weak treasury inflows, slowing institutional demand, and bearish derivatives data, with over $1.2 billion in long positions liquidated recently. Options market behavior shows increased ETH put activity on Deribit, indicating growing downside risk, while Bitcoin's options open interest has surged past $50 billion, mostly in calls, highlighting a clear divergence between the two majors.
Additional context includes reduced activity from Bitmine Immersion Technologies, which had aggressively accumulated ETH earlier but has slowed since September, and Google Trends data showing falling global interest in Ethereum. Investors are monitoring on-chain data for signs of reduced selling pressure, but the outlook remains cautious with potential for continued volatility.
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