Binance ETH Short Squeeze at $2.7K and $3K:
* On Binance, Ethereum saw two significant short liquidations event near the $2,700 and $3,000 levels, indicating short squeezes likely triggered by sudden bullish momentum.
* This squeeze was likely accelerated by thin liquidity at higher price levels, which combined with sudden aggressive buying, pushed prices up rapidly, liquidating short positions in the process.
U.S. Jobless Claims Surprise on July 10:
* The broader rally was catalyzed by the U.S. jobless claims data released on July 10, which came in below expectations, signaling labor market strength.
* This unexpected economic resilience reduced recession fears and drove risk-on flows into crypto markets, benefiting assets like ETH.
* As a result, traders on Binance increased leverage exposure to ETH, anticipating further upside.
Surge in Binance ETH Open Interest:
* ETH open interest surged significantly, reaching the $7 billion mark as shown in the chart — a level not seen in recent months.
* This sharp rise was driven by a renewed appetite from derivatives traders to long Ethereum following the release of U.S. jobless claims data on July 10, which came in below expectations.
* The unexpected macroeconomic data—which signaled potential dovish Fed policy shifts—triggered a wave of bullish sentiment across risk assets, with Ethereum leading the charge.
Conclusion: Economic Surprises Drive Risk Asset Volatility:
This event underscores how macroeconomic data surprises—particularly in labor markets or inflation—can spark amplified price reactions in high-risk assets like Ethereum.
While some traders may try to front-run such events, the market response can diverge from consensus expectations, resulting in forced liquidations and unexpected breakouts.
Monitoring both economic indicators and exchange positioning remains critical in navigating these volatile scenarios.
Written by Amr Taha
