Ethereum is facing a record-breaking short position as hedge funds have amassed $1.4 billion in short bets on the cryptocurrency through the Chicago Mercantile Exchange. Additionally, traders have placed $130 million in short bets on Ethereum on the Deribit derivatives exchange, with $2,000 being the most popular price target. The ETH/BTC ratio has dropped to its lowest level in four years, and Ethereum remains 50% below its all-time high of $4,848, currently trading at $2,650. Despite this bearish sentiment, institutions have been buying Ethereum ETF shares aggressively, with $790 million flowing into spot Ethereum funds last week, surpassing Bitcoin investments for the first time this year. Market analysts suggest that some investors may be employing arbitrage strategies to profit from Ethereum’s price movements. The number of Ethereum shorts on the CME has increased by 500% since November, and market watchers note that Trump’s election has not led to the expected price appreciation for Ethereum.