Current ETH Price: $4,299 (+1.72%)
Ethereum has surged past the $4,000 milestone for the first time since December 2024, igniting excitement across the market. This breakout didn’t just attract attention — it also triggered a wave of short liquidations, paving the way for a potential explosive short squeeze.
Short Sellers Take a Hit
As soon as $ETH crossed $4K, roughly $105 million in short positions were wiped out — accounting for more than half of the day’s total crypto short losses. The rally pushed prices to around $4,060 before a slight pullback.
Some market trackers even estimate liquidations closer to $119 million, with open interest climbing toward levels not seen in almost three years — signaling that leverage in the market remains high.
Key Resistance Level
Popular analyst Ash Crypto has highlighted $4,100 as the crucial line to watch. A decisive breakout and sustained hold above this level could send $ETH quickly toward the $4,400–$4,500 range.
Why the Rally Could Continue
ETF Inflows & Big Investors
Spot Ethereum ETFs have attracted $537 million in just four trading days, showing strong institutional demand.
Whale Buying & Strong On-Chain Metrics
#Ethereum DeFi TVL and staking volumes have risen sharply, while whales continue accumulating — making liquid ETH supply increasingly scarce.
Heavily Skewed Shorts in Futures
Earlier this month, leveraged funds held over 12,500 short contracts compared to just 1,275 longs (about 51.7% of open interest). A move higher could flip these positions aggressively.
Risks to Consider
Overheated Market
#ETH has gained 70% this month, with RSI reaching 83.6 and funding rates spiking +248% — both signs of stretched conditions.
Seasonal Weakness
Historically, August and September have been slow months for Ethereum, so traders should remain cautious despite the bullish momentum.
Final Take
is positioned for a high-energy move. Breaking above $4,100 could trigger a strong short squeeze, fueled by ETF inflows, whale buying, and an overloaded short side. Still, with overbought indicators flashing and seasonal patterns looming, traders should stay alert for p
otential pullbacks.
