Short sellers wiped out $198 million! ETH short squeeze frenzy may ignite $4000
Core events: In the last 24 hours, the total liquidation across the network reached $198 million, with short positions accounting for 75%. The liquidation for ETH alone was $91.47 million, with the price soaring to $3827, a 5.57% increase in 24 hours.
Key analysis:
Technical short squeeze: ETH broke through the key resistance at $3800, forming a 'bull market trio' on the daily chart, forcing high-leverage short sellers to close their positions, triggering a chain of liquidations.
Institutional drive: The approval of the spot ETH ETF has driven capital inflow, and the prohibition of staking has accelerated direct purchase of coins, leading to an imbalance in supply and demand that pushes prices higher.
Historical comparison: This liquidation scale is the most severe since the '519' incident in 2021, but the proportion of institutional funds exceeds 50%. Unlike the leveraged market dominated by retail investors in 2020, it has formed a new pattern of 'institutions eating meat, retail investors drinking soup'.
Market outlook: ETH is only 5% away from $4000, and a breakout may initiate a major upward trend towards $4400-$4500.
But caution is needed:
Short-term profit-taking may trigger a correction; the US August CPI data may prompt a shift in Federal Reserve policy.
Personal view: The current market has entered the 'Institutionalization 2.0' era, with ETFs becoming the mainstream entry channel. Retail investors need to reduce high-leverage speculation and pay attention to institutional trends. If ETH stabilizes above $4000, it may become the new benchmark for 'digital gold', but macro risks remain, and light participation is advised.
