On July 10, Jiang Zhuoer, a well-known figure in China's crypto mining sector, announced that he is taking short positions on Ethereum (ETH) for both short and medium-term horizons. Zhuoer believes the bear market cycle is far from over, suggesting that any event-driven rallies should be viewed as opportunities to increase short exposure.
Shorting Thesis: Prolonged Bear Market and Geopolitical Risks
In his statement, Zhuoer emphasized that the market remains in a sustained downtrend and investors should not mistake temporary bounces for reversals. He specifically warned of escalating geopolitical tensions, comparing the current situation to a potential 'Suez Canal moment' for the United States, implying that a new conflict could disrupt global supply chains and risk assets.
At the time of writing, Ethereum was trading with a 24-hour decline of 0.45% (per source data). Market sentiment remains largely bearish, with multiple large shorts already in play. A trader recently opened a $100 million short position on ETH with 23x leverage, while a whale sold $72.3 million worth of ETH amid bearish market sentiment.
Market Context: Intense Long-Short Battle
Ethereum currently faces headwinds from Layer-2 expansion, macroeconomic uncertainty, and institutional outflows. Jiang's short call reinforces the bearish outlook. However, some analysts note that if ETH breaks above the $2,211 resistance level, it could trigger up to $854 million in short liquidations, creating a squeeze risk.
As an early miner and opinion leader, Jiang's public short position may influence smaller traders. However, the crypto market remains highly volatile, and individual views should not be taken as financial advice.