Ethereum (ETH) is making a strong comeback. Following a massive $112 million short squeeze, the price surged over 7%, sparking renewed excitement around the $2,800 resistance level. A familiar bullish fractal pattern is reemerging — the same setup that once pushed Ethereum to $4,000. Could history be repeating?
ETH Strengthens Amid Geopolitical Calm and Aggressive Shorts
As of Monday evening, Ethereum was trading at $2,418, with spot volume exceeding $26 billion. A brief weekend dip driven by geopolitical concerns was quickly bought up after President Trump announced a ceasefire between Iran and Israel, reigniting risk appetite across crypto markets.
Interestingly, this setup mirrors the conditions between Q4 2023 and Q1 2024, when ETH broke out of consolidation and skyrocketed by 80% in just a few weeks. Now, a similar scenario may be unfolding.
The Fractal Suggests a Breakout is Near
Ethereum has been consolidating for weeks, but technical indicators suggest a potential breakout above $2,800. The RSI (Relative Strength Index) is behaving similarly to January 2024 — just before ETH’s previous explosive rally. If the RSI pushes above 50, it could signal strong bullish momentum.
A confirmed daily close above $2,800 could unlock a new bullish phase, possibly driving ETH toward the $4,000 zone.
Traders Remain Skeptical – Ironically, That Fuels the Rally
While technicals flash green, many traders are still betting against ETH. On Binance, the percentage of short positions jumped from 28% to 39% in just 24 hours. That means more fuel for a rally — if prices continue to rise, more shorts will be liquidated, creating further buying pressure.
Today’s $112 million short squeeze was one of the largest since May, showing how quickly the market punishes excessive bearishness.
🧠 Summary:
Ethereum is at a crucial tipping point. A bullish fractal, positive RSI, and massive short squeeze are aligning for a breakout. If ETH can close above $2,800 and sustain it, a move toward $4,000 could follow. Bearish traders should be cautious — the market seems ready to chew them up again.
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