First off: Ethereum is – compared to many, many other cryptocurrency projects – a great project, and its tokens, Ether, are being traded on the exchanges for quite some time, now. With price moving up and price moving down. But as Ethereum gained more popularity, the down phases suddenly became rare. Volumes of 1.000 BTC only on Poloniex became common, and soon, the daily amount being traded increased well into the five figures – sometimes even close to 100.000 BTC on a single day.
Yes. That’s right. 10.000.000 USD worth of traded Ether and more, and an increase in value of 60x the IPO price. People (that being traders, “investors”, regular shitcoiners and what not) were in a great mood and shorting Ether became the new synonym for financial suicide. Things were great and lots of profits were made (as long as you didn’t have that stupid idea of shorting Ether).
Bad news, security incidents or anything that would earn any other cryptocurrency you can think of a horrible death didn’t seem to affect Ether. Users in crypto related chatrooms were preparing their shorts (“It just has to dump on this!”), just to find themselves being margin called later on. I have refrained from shorting ETH after two small failed attempts, but what happened there just didn’t feel right.