This update highlights a significant short squeeze on Ethereum ($ETH ), suggesting a potential bullish breakout. Here's a breakdown of the scenario and what it means:
Key Takeaways:
Shorts Liquidated at $2,583: ~$5.5K in shorts wiped out—this implies bearish traders were betting on a drop and got caught on the wrong side.
Bulls in Control: Liquidations can trigger rapid price moves up as shorts are forced to buy back, fueling momentum.
Technical Outlook (as of May 15, 2025):
Buy Zone: $2,565–$2,595 — attractive area for smart entries, especially after a liquidation flush.
Short-Term Targets:
T1: $2,668
T2: $2,725
T3: $2,780 (strong resistance zone—watch for rejection or breakout)
Stop Loss: Below $2,525 — a break below this invalidates the setup, signaling potential reversal.
Why It Matters:
Short Squeeze = Upward Fuel: Liquidation events often precede sharp upward movements.
Structure Holding: Higher lows suggest uptrend remains intact.
Volume Spike + Liquidation = Volatility Ahead.
Risk Note:
A break below $2,525 could lead to a bull trap. Stay nimble and protect profits with stop-losses.
If you're trading this setup:
Stick to the plan
Watch for volume confirmation near resistance
Don’t chase green candles—wait for pullbacks into support zones
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