$ETH s ‘Most Hated’ Rally Nears $4K — Could Spark $331M in Liquidations, Warn Analysts
Ethereum surges as traders brace for a liquidation storm — and big money shifts from altcoins to $ETH
Ethereum (ETH)$, the world’s second-largest cryptocurrency, is staging what analysts are calling the “most hated” rally of the year — and it's now pushing dangerously close to the $4,000 mark. But while bulls celebrate, many traders are nervously eyeing the $331 million in potential liquidations that could be triggered if the price keeps climbing.
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According to on-chain and market data analysts, a significant number of short positions are stacked around the $3,800–$4,000 price zone. A breakout above this threshold could force short-sellers to buy back ETH at higher prices to cover their positions — setting off a cascade of liquidations and accelerating the price surge even further.
Capital Rotation: Altcoins Lose Steam as ETH Gains
What makes this rally different is the shifting capital across the crypto market. Traders and institutional investors are pulling liquidity from smaller altcoins and funneling it into ETH, signaling a decisive rotation into higher-capitalization, safer bets.
“This rally has been brewing quietly while the spotlight was on meme coins and AI tokens,” said one crypto strategist. “But now, the capital is rotating, and Ethereum is regaining dominance in a major way.”
Glassnode data also shows ETH’s dominance rising across derivatives markets, further confirming the shift in market sentiment.
Why It’s Called the “Most Hated” Rally
The term “most hated” rally reflects the market’s skepticism. While ETH has surged over 15% in recent weeks, many retail traders and influencers expected a pullback or continued stagnation. Their disbelief has led to large short positions, especially around key psychological resistance levels — now turning into fuel for ETH’s momentum.
Ironically, the more traders bet against ETH, the higher it climbs.
Liquidation Warning: $331 Million at Risk
Analysts warn that if ETH breaks and holds above $4,000, it could trigger up to $331 million in liquidations. The resulting volatility could be brutal for overleveraged short sellers but thrilling for long-position holders.
"Ethereum is building pressure like a coiled spring,” said a derivatives expert. “If it explodes past $4K, we could see a short squeeze that sends prices even higher — fast."
What's Next?
ETH’s next resistance sits near $4,200, a level not seen since late 2021. If bulls maintain momentum and the broader crypto market avoids macro shocks, Ethereum could be on the verge of a new bullish chapter — possibly setting the tone for the next altcoin cycle.
But traders are advised to tread carefully. With liquidation levels rising and volatility expected, this is no time for complacency.
In Summary:
ETH is pushing toward $4K in what analysts dub the “most hated” rally.
A breakout could liquidate over $331 million in short positions.
Capital is rotating from altcoins into ETH, showing growing market confidence.
Traders should prepare for high volatility and potential price acceleration.
