Since December 2024, ETH had entered a prolonged correction that lasted around five months.
This downward phase triggered a cascade of long liquidations on Binance
We can consider it a necessary cleanup, which likely helped flush out excess speculation and reset the ETH derivatives market
As a result, it created a healthier foundation for the bullish recovery that began in late April.
Today, we’re seeing the opposite.
Short liquidations are now dominating on Binance and are clearly providing additional fuel to the ongoing bullish momentum.
This inversion suggests that many market participants are now positioned against the trend, and their forced exits are reinforcing the strength of the rally.
Taking a different perspective and focusing solely on the value of short liquidations, we can observe a clear increase in recent weeks.
Several significant short squeezes have occurred on Binance, with liquidation volumes reaching 32 million and even 35 million dollars.
This surge reflects growing pressure on bearish traders and confirms that the uptrend is forcing more and more shorts to capitulate.
If short liquidations continue to dominate at this pace, ETH could very well be on the path to challenge its previous ATH soon.
This scenario would likely be supported by continued inflows into spot ETFs, which are gaining traction, as well as by accumulation from entities or companies adopting ETH as part of a long-term store of value strategy.
Written by Darkfost
