According to Flood (@ThinkingUSD) on Twitter, traders should wait for a price bounce before initiating short positions on Ethereum, highlighting a bearish outlook and suggesting this as a potential trading opportunity for crypto market participants. This approach aligns with recent volatility in Ethereum markets, where shorting after rallies has been a profitable strategy for some traders (source: Flood on Twitter, May 8, 2025).

According to Flood (@ThinkingUSD), the advantage of correlated rallies in the cryptocurrency market is the opportunity to short Ethereum (ETH) at higher prices. This strategy can be particularly beneficial as ETH often experiences significant price movements during these rallies, allowing traders to capitalize on potential overvaluations. Hyperliquid mentions that traders should look for these opportunities to optimize their trading strategies.

According to The Kobeissi Letter, institutions have shifted from shorting Ethereum to investing in Bitcoin. Despite record levels of retail capital in the cryptocurrency market, retail exposure to Bitcoin has decreased, with a significant drop noted in January 2025. The rise of memecoins has further accelerated this decline in Bitcoin exposure.