Institutional inflows and break resistance at $4,100 fuel short squeeze speculation
Ether’s price rally above $4100 has triggered one of the largest short position liquidations in recent months, wiping out an estimated $105 million in Ether shorts within a single day. This accounts for more than half of the $199.6 million in total crypto short liquidations, according to market data.
On Friday, Ether climbed as high as $4,060, marking its first break above the $4,000 level since December 2024 before stabilizing around $4,015. The move came amid growing optimism in the crypto market, with traders eyeing the $4,100 level as critical resistance that could set the stage for a powerful short squeeze.
“ETH breaks $4100, it could trigger a short squeeze sending ETH to $4,400–$4,500 in just a few hours,” said prominent crypto analyst Ash Crypto, pointing to the potential for rapid upward momentum.
Market sentiment has turned decisively bullish as institutional demand strengthens. Over the past four trading days, spot Ether ETFs have attracted approximately $537 million in inflows, signaling growing interest from large investors.
Adding to the sentiment, public figures have openly warned against shorting major cryptocurrencies. One notable voice said it was satisfying to see “ETH shorts get smoked” and urged traders to stop betting against Bitcoin and Ether.
The rally also comes amid ambitious price forecasts from market watchers. After breaking $4100, BITX trader predicted Ether could reach $10,000+, while Fundstrat’s Tom Lee suggested the asset may be experiencing its “Bitcoin 2017 moment” with potential to climb as high as $16,000.
The recent liquidation wave underscores the risks of shorting into a strong uptrend — and the growing conviction among traders that Ether’s bull run may be far from over.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.