October 15th 2026, 6:30 AM
Ethereum Plunges to 2-Month Low Amid Wintermute Short Squeeze
Key Summary
Ethereum (ETH) has fallen to a 2-month low of $2,315 after a surge in open interest and short selling by Wintermute, a major market maker, led to a sharp decline in ETH prices. The decline is part of a broader market downturn, with Asian equities experiencing significant losses. The situation highlights the risks of short selling and the impact of macroeconomic factors on cryptocurrency markets.
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Ethereum Plunges to 2-Month Low Amid Wintermute Short Squeeze
Although the entire cryptocurrency market is in the red on Thursday morning, some altcoins have taken it worse than others, and the largest of the bunch is among them. ETH just slumped to $2,315 (on Bitstamp), down $200 for the day. This became its lowest price tag since the breakout rally in the middle of August.The Reasons Behind the Decline
The reasons behind the overall market crash are quite diverse, as reported earlier. They range from the broader crash in Asia, such as KOSPI's 8% plunge, and the 6% decline in the Nikkei, to macro pressure from the CPI announcement yesterday, and fresh reports that the US may be developing a bigger non-nuclear weapon to target Iran.ETH-Specific Reasons
For ETH, though, there are some isolated reasons. For instance, the open interest skyrocketed yesterday after the slightly higher-than-expected CPI reading. Daan Crypto Traders reported that "a lot of shorts" emerged that "piled into the downside momentum." Moreover, they were "sitting comfy and steady," leaving little room for a short squeeze.Wintermute's Short Positions
Separately, one of the largest market makers, Wintermute, continues to build on its short ETH positions. Onchain Lens noted that the company currently holds $75 million worth of shorts on Hyperliquid, and ETH is among the largest positions. WINTERMUTE HOLDS $75.45M IN SHORTS ON HYPERLIQUID Wintermute currently holds $87.34M in open positions, with 86.4% of its exposure on the short side.ETH ETFs Experience Net Outflows
The other ETH-centered reason came from the ETFs. After gaining nearly $25 million in net inflows on Tuesday, the funds turned red yesterday, with almost $130 million leaving. Over $290M Wrecked#Ethereum#Wintermute#ETH#CryptoMarket