Ethereum News Today: Ethereum Surpasses $3,800 Triggering $104.76M Short Liquidations Eyes 9.8% Rally to $4,000

Ethereum’s recent price surge has positioned it to target key short liquidation clusters above critical resistance levels, amplifying bullish momentum as traders face forced buy-backs. The cryptocurrency has breached the $3,800 threshold, triggering the liquidation of over $104.76 million in bearish positions across derivatives markets. These clusters, concentrated in the $3,800–$3,900 range, represent zones where leveraged short positions are densely packed. As Ethereum ascends, automated systems are closing these positions by repurchasing ETH, creating a self-reinforcing upward cascade that accelerates price movement [2].

The liquidation activity is driven by strategic buying pressure from institutional players, according to analysts. CryptoQuant’s Amr Taha highlighted that large-capacity investors have been stabilizing Ethereum’s price, reinforcing its resilience amid broader crypto volatility [4]. Binance’s liquidation heatmap identifies these price levels as high-leverage exposure zones, with whale activity and short squeezes further fueling upward momentum if bulls maintain control [3]. The market’s focus now shifts to the $4,000 psychological barrier, a level analysts like Galaxy Digital’s Michael Novogratz predict Ethereum could reach—a 9.8% increase from its current price—citing technical indicators and macroeconomic tailwinds [2].

However, the broader crypto landscape remains fragile. Bitcoin’s recent downturn, marked by $585 million in liquidations, underscores systemic risks tied to over-leveraged positions and regulatory uncertainties [2]. Ethereum’s performance, in contrast, reflects growing confidence in its fundamentals, including Ethereum 2.0 upgrades and DeFi growth. This divergence highlights Ethereum’s role as a leading altcoin, with traders increasingly hedging against further consolidation as the asset demonstrates institutional adoption [2].

Despite the bullish trajectory, volatility persists. Short squeezes, while explosive, often precede corrections before resuming uptrends. Bitfinex analysts caution that sustaining the rally above $3,800 is crucial to attracting speculative inflows, warning that a breakdown could reignite selling pressure [3]. The Crypto Fear & Greed Index’s “Greed” score of 70 signals lingering optimism, yet macroeconomic factors—such as the Federal Reserve’s policy stance and delays in ETF approvals—remain headwinds for the sector [2].

Ethereum’s ability to navigate these dynamics will hinge on maintaining institutional participation and absorbing liquidation risks without triggering cascading sell-offs. As traders balance short-term volatility with long-term fundamentals, the path forward depends on Ethereum’s resilience amid regulatory and macroeconomic uncertainties. The interplay between Ethereum’s price action and Bitcoin’s performance will also shape risk appetite, with cross-market correlations influencing liquidity dynamics [2].

Source:

[1] [Ethereum Reclaims $3,800 Triggering $150M Short Liquidations](https://www.ainvest.com/news/ethereum-news-today-ethereum-reclaims-3-800-triggering-150m-short-liquidations-60-bearish-bets-completes-golden-cross-2507/)

[2] [Bitcoin Tumbles Below $116K in Bloodbath for Crypto Longs](https://www.fxstreet.com/cryptocurrencies/news/bitcoin-tumbles-below-116k-in-bloodbath-for-crypto-longs-202507250541)

[3] [Triangle Breakout Eyes $7 Target Despite Bearish Sentiment](https://coincentral.com/sui-sui-price-triangle-breakout-eyes-7-target-despite-bearish-sentiment/)

[4] [$PERP/USDT – Intraday Analysis](https://www.binance.com/en/square/post/27455911704177)

[5] [Bitcoin Falls Below $115,356 as $585M in Liquidations Trigger 2.63% Drop](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-falls-115-356-585m-liquidations-trigger-2-63-drop-2507/)