The cryptocurrency market is on high alert. On-chain data shows that more than 6 billion dollars in Ethereum ($ETH ) short positions will be liquidated if the price reaches $4,900.
💥 What does this mean for the market
A "short squeeze" occurs when the price of an asset, like ETH, rises rapidly. This forces traders who were betting that the price would go down to buy back the asset to close their positions and avoid larger losses.
This enormous amount of forced buying creates a chain reaction, pushing the price even higher and creating a "short squeeze" event. With 6 billion dollars at stake, this could trigger a parabolic move for Ethereum.
Are the Bears about to receive a painful dose of reality? The market is preparing for what could be a historic short position contraction.
What do you think will happen when we reach $4,900? Let us know in the comments! 👇