Look at all the desperate people who shorted eth try and get you to sell. Hahaha.
How do you short ETH or any other cryptocurrency?
Margin trading is possible on poloniex, bitfinex aswell as kraken. As long as you have collateral in another currency you can borrow and sell coins. You don't need to have ETH in the first place to sell it. People are doing that a lot.
If you're bagholding the ETH you can offer it to lend to shortsellers and increase your holdings in ETH without having to trade it but the rates are pretty bad right now for lenders.