Ethereum Rises 7% Amid $112M Short Squeeze — Bullish Fractal Targets $2,800 Will Binance Shorts Fuel Another Rally?
Ethereum (ETH) is trading at $2,418 today, June 24, up 7.3% in 24 hours and over $26 billion in spot trading volume. Recent gains have pulled Ethereum price into a bullish fractal pattern that points to a breakout rally of $2,800.
Meanwhile, short sellers are suffering losses, with losses of more than $112 million in the past 24 hours as the crypto market surged following the ceasefire agreement between Iran and Israel. Will Ethereum's Fractal Play Like 2024, Or Will Selling End The Rally?
Ethereum Price Fractal Targets $2,800 Breakout
After pausing the rally that began in May, Ethereum price has now been trading within a strong consolidation range for over a month.
It briefly broke below that range over the weekend as bears sold off on fears of geopolitical tensions. However, traders quickly bought the dip after President Trump announced the Iran-Israel ceasefire deal on Tuesday, which increased risk appetite among crypto traders.
This price action reflects what happened between Q4 2023 and Q1 2024. During the last quarter of 2023, there was a parabolic rally in ETH price that later stalled between December and January as prices entered a consolidation phase.
It broke out of that range after more than a month with a strong rally that took the price to a peak of around $2,200 to $4,000 within months.
Why does this matter? The last time this fractal appeared (Jan 2024), ETH increased by 80% in 6 weeks.
To validate the bullish fractal pattern, Ethereum price would need to overcome strong resistance at $2,800. A decisive close above the upper boundary of this consolidation range may then open the next bullish leg above $4,000.
The RSI supports this fractal pattern as it is making the same move it did before the bullish breakout in January 2024. Traders should wait until this indicator breaks above 50 to confirm strong bullish momentum.
However, a recent analysis by market expert suggests that $ETH traders are cashing out, which could threaten an eventual breakout from price recovery and consolidation. Selling pressure from these traders could force Ethereum price to consolidate.
Binance Traders Increase Bearish Bets Despite $112M Short Squeeze
After rallying over 7% today, Ethereum recorded one of the biggest short squeezes in history. Within 24 hours,Data shows that over $112 million in short positions saw liquidation, which is the largest short squeeze scenario since May 9.
This liquidation event helped Ethereum price rally as short sellers started buying ETH to close out their positions.
However, despite facing severe losses, futures traders on Binance are still increasing bearish bets. In just 24 hours, the percentage of Binance traders with short positions on $ETH increased from 28% to 39%.
This positioning supports the bullish prediction of the Ethereum price. If these positions are suddenly closed, buy-side pressure to support the rally will increase significantly.
In summary, the price of $ETH is at a critical juncture as a bullish fractal pattern comes into play.
The pattern points to a breakout rally above $2,800 in the near term. If this rally occurs, short sellers who have been aggressively opening positions on Ethereum may exit the market, accelerating the price rally.
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