In our most recent webinar, Grayscale ETN ETHE which tracks the price of Ethereum (ETH) was mentioned as a potential short candidate when its price gets too far ahead of the actual price of ETH. Yesterday, despite ETH being clearly down in price, ETHE made new highs. A short position could be initiated at the close though is risky since ETHE could gap higher once again. Today, when it gapped lower, a short at the open while closely tracking its 620 to manage risk could be initiated.
This type of strategy applies to the other Grayscale ETNs on both the long and short sides as GBTC, ETHE, and ETCG tend to get overbought and oversold relative to the price of their underlying cryptocurrencies after big moves in either direction.
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