📊 ETH: Tension Is Building — A Break Above 3,500 Could Trigger a Surge
ETH is currently trading around $3,459, sitting in a sensitive transition zone: Longs have been flushed out below, while Shorts are heavily concentrated above.
📉 Longs are depleted — market sentiment is cooling
From the $3,000 to $3,400 range, Long liquidations have steadily declined, indicating buyers with leverage have mostly exited after prior shakeouts. At the same time, the Fear & Greed Index (FGI) has dropped from 64 → 51 → 48, signaling a shift from bullish euphoria to cautious neutrality. This is when traders often hesitate to Long — but begin placing Shorts prematurely, creating a setup vulnerable to a reversal.
📈 Shorts piling up above — squeeze risk increasing
Between $3,500 and $3,825, there’s a dense buildup of Short liquidations. The cumulative Short liquidation curve is surging, revealing widespread bearish bets. If ETH breaks through the $3,500–$3,560 zone, it could trigger a classic short squeeze, forcing sellers to buy back in panic and pushing the price sharply higher.
📌 Bottom line: ETH leans bullish if 3,500 is broken
– Market sentiment has cooled just enough to set the stage for a surprise move.
– Shorts are overexposed above — ideal for a squeeze scenario.
– A clean break above $3,500 could accelerate price toward $3,800+.
🚨 Suggested Strategy:
Watch closely around the $3,500 zone. A breakout favors a momentum Long. If price falls below $3,400, it’s safer to stay out — the lower region lacks clear support.
