Ethereum traders witnessed a brutal short squeeze in the last 24 hours, with more than $105 million worth of short positions wiped out as ETH surged past the $4,180 mark. The move caught bearish traders off guard, delivering one of the largest liquidation events of the month and sparking debates over whether bulls can maintain this momentum.
$105M in Ethereum Shorts Liquidated as Price Rockets
According to Coinglass data, Ethereum recorded $129.16 million in total liquidations in the past day, with short positions making up the bulk of the damage at $105.47 million. The sudden price jump forced over-leveraged traders to close positions at a loss, further fueling upward momentum.
Eric Trump, joining the crypto conversation, took a jab at the bears on X, stating:
This sentiment reflects a growing belief among market participants that Ethereum’s recent breakout could be the start of a prolonged bullish phase.
Sorce: Coin Glass
Ethereum Breaks $4,180 – The Technical Setup
On the daily chart, Ethereum has now extended its rally after breaking key resistance levels at $3,900 and $4,000. The next significant resistance sits near the $4,250–$4,300 zone, a level last seen before the 2021 all-time highs.
The current bullish structure remains intact as long as ETH holds above $4,000, which has now flipped into support. A sustained break above $4,300 could open the door to a run toward the $4,500 psychological barrier.
However, a rejection at this zone could lead to a retest of $3,900, which would serve as a key indicator of whether bulls still have control.
Source: Trading View
“This is ETH Season” – Analyst Perspective
Well-known analyst Benjamin Cowen added fuel to the bullish narrative, declaring:
This comment reflects a sentiment that Ethereum is leading the market rather than simply following Bitcoin’s rally. With the ETH/BTC pair showing signs of strength, some traders believe Ethereum could outperform the broader altcoin market in the short term.
On-Chain Factors and Treasury Demand
Beyond price action, Ethereum‘s fundamentals remain strong. ETH treasury adoption by corporations has been gaining traction, offering a new avenue for institutional demand. More companies holding ETH in their reserves could reduce available supply and potentially support higher prices.
That said, some voices, including Ethereum co-founder Vitalik Buterin, have warned that overleveraging and speculative excess could pose risks if the trend turns into a “house of cards.”
Can Ethereum Bulls Maintain Control?
For bulls to keep momentum, Ethereum needs to hold above its new support zone and maintain strong trading volumes. The sharp rise has already shaken out weak shorts, but sustained growth will require continued buying interest, especially from spot traders and institutional investors.
Short-term volatility should be expected, particularly with macroeconomic uncertainty and Bitcoin’s own market moves influencing sentiment. If bulls can defend $4,000 on pullbacks, the path to $4,500 remains in play.
Final Thoughts: What’s Next for Ethereum?
Ethereum’s $105 million short liquidation has put bears on the defensive and given bulls the upper hand. The market narrative has shifted toward an “ETH season”, but whether this momentum continues depends on key resistance breaks and sustained institutional demand.
If ETH can hold above $4,000 and push past $4,300, the next leg of the rally could bring the $4,500–$4,800 range into focus. However, traders should be cautious—after such aggressive liquidations, the market often experiences short-term pullbacks before resuming its trend.
