According to theory, an increase in shorts should be an important indicator to any trader in any asset. When lots of people open lots of shorts they are anticipating a large price decline. Right now shorts on Ethereum go through the roof, exceeding the level demonstrated when China banned crypto-exchanges.
About 30,000 eth shorts were added this morning, at 5 AM London. Then with each hour, the number grew, reaching staggering 186,000 eth shorts. In comparison, there were only 178,000 shorts when China introduced the ban on crypto-exchanges.
The reason for this buildup of shorts is unclear, and one can only speculate. Some experts suggest that the situation was caused by the decision of some SEC meeting to declare ethereum a security. Other thinks that something might have happened in Asia.