Ethereum has been rising steadily this summer, aggressively pushing up but sparking intense debate in the market. Some marvel at the momentum of this trend, while others watch helplessly as shorts approach the liquidation line, feeling anxious and on edge. Analysts state that the explosive rise of Ethereum is the result of deep accumulation of short positions and a shift in capital flow structure.
According to CoinGecko market data, as of the time of writing, Ethereum is priced at $3,800, having risen about 4% in the past 24 hours and as much as 25% in the past week. While investors are excited, analysts also believe that if the market ignites a short squeeze and forces shorts to cover, it could further boost Ethereum's upward momentum.
Crypto Banter stated bluntly on social platform X: 'The Ethereum rebound is currently the most unpopular in the market.'
He pointed out that there is currently an abundance of short positions in the market. If Ethereum successfully breaks through the psychological barrier of $4,000, it is estimated that a $331 million wave of short liquidations will be triggered, further strengthening Ethereum's upward momentum.
$ETH is the most hated rally right now
$331.17M worth of shorts are set to be liquidated when Ethereum reaches $4000. pic.twitter.com/tl3XbSqs5b
— Crypto Banter (@crypto_banter) July 20, 2025
Behind this wave of Ethereum's 'unblessed surge' lies a deeper shift in capital structure. Renowned cryptocurrency trader Pentoshi pointed out that Bitcoin's market share has seen its sharpest decline in nearly four years over the past week, indicating that market funds are rapidly flowing from Bitcoin to Ethereum.
Pentoshi bluntly states that the current trend of Ethereum is similar to a 'melt up'—not due to strengthening fundamentals, but rather driven by market fear of missing out (FOMO) pushing prices up, resulting in a rapid short-term increase in asset prices, which could also trigger a correction risk.
Pentoshi also mentioned another structural new variable—recently, companies focusing on the 'Ethereum Treasury Strategy' are actively incorporating Ethereum into their balance sheets. He said:
Some of these companies have only just been established for a month and are already competing to build positions, actively incorporating Ethereum into their asset allocations.
At the same time that capital is shifting, the strength gap between Ethereum and other competing coins is becoming increasingly evident.
Cryptocurrency analyst Benjamin Cowen pointed out that although some competing coins have shown slight improvement relative to Bitcoin, they still significantly lag behind Ethereum.
Benjamin Cowen believes that market funds are concentrating towards Ethereum, and from the risk-reward structure perspective, Ethereum currently has a lower relative risk compared to other competing coins, and its performance is increasingly resembling the earlier bullish trends of Bitcoin.
"Will the 'short squeeze show' take place? Analysis: Ethereum breaking $4,000 will trigger $330 million in short liquidations" This article was first published on (Blockke).
