Ethereum has powered past the $4,000 level, sending shockwaves through the market and punishing overleveraged short sellers. In just the past 24 hours, more than $76M worth of ETH shorts have been liquidated — including one trader on 25× leverage who took a $15.8M hit and is still down $3.3M.
This is a textbook short squeeze, and analysts warn it could get even bigger. If ETH holds above $4K, the next wave of liquidations — potentially another $331M — could be triggered.
Institutional demand is adding serious fuel to the rally. ETH ETFs have pulled in $9.5B so far, with a single-day record of $727M in inflows. On-chain indicators are pointing to $4,900 as the next major target, echoing previous runs where Ethereum doubled in value in a short span.
For now, momentum is clearly on the bulls’ side. But if $4K doesn’t hold, traders should be ready for a sharp correction.
