news 
Title: Ethereum News: Is a Short Squeeze Coming? Hedge Funds Push ETH to the Brink
The price of Ethereum (ETH) has been under immense pressure in recent days, with the cryptocurrency trading near $2,500 as hedge funds continue to bet against it. This surge in short-selling positions has pushed ETH’s market capitalization to six times smaller than Bitcoin’s, a level not seen since 2020.
Despite strong inflows of over $2 billion in December alone and a record-breaking weekly inflow of $854 million in the same period, Ethereum’s recent performance has been underwhelming. The cryptocurrency is currently struggling to find support amidst concerns about high gas fees impacting Layer-2 network performance.
One user on social media, Lola, suggests adopting SHIB (the largest native token on Ethereum) as a gas token to reduce costs and improve the long-term outlook for ETH. They propose that if Vitalik does not implement a dual-token economy on L1, it may be difficult to see changes in its price.
In December 2024 alone, ETH attracted over $2 billion
The recent performance of Ethereum has raised doubts about its long-term goals compared to Bitcoin, as the latter’s dominance continues to grow.
Source: coinpedia.org
