Ethereum ($ETH ) just delivered a painful blow to one high-leverage traderāclosing a short position with a $15.8M loss and still facing $3.3M in floating losses. But this is more than a single traderās bad dayā$ETH s riding a strong wave of momentum.
š„ Whatās Driving ETHās Surge?
1ļøā£ Short Squeeze in Full Force
Over the last 24 hours, $76M worth of ETH shorts have been liquidatedāpart of $103M total crypto liquidations. Analysts say breaking above $4,000 could trigger another $331M in short positions being wiped out.
2ļøā£ Institutional Demand is Exploding
$ETH futures open interest is at an all-time high of $58B. The ETH/BTC pair has broken past its 200-week EMA, and U.S. spot ETH ETFs have seen $9.5B in inflows, including a massive $727M in a single day.
3ļøā£ On-Chain Signals Are Bullish
Glassnode data points to a potential rally toward $4,900. Network growth and liquidity resets mirror previous bottom phasesāhistorically followed by 100%+ rallies.
š” Why This Matters
Short sellers are getting wiped out, accelerating the rally.
Big money from ETFs and institutions is flowing inācreating a stronger base than hype-driven pumps.
Technical and on-chain indicators show ETH breaking major resistance.
š Trader Tips
Watch the $4K markābreakouts can be explosive, but pullbacks can be sharp.
Keep an eye on ETF inflows and open interestāthey reveal institutional sentiment.
Momentum is already buildingāpositioning early could be key.
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