Ethereum News Today: Ether Surges 6.7% to $4,192 Amid $105M Short Liquidations and Bullish Momentum

Generated by AI AgentCoin World
Saturday, Aug 9, 2025 10:40 am ET1min read
BTC
--
Aime RobotAime Summary

- Ether (ETH) surged to $4,250 on July 20, 2025, its highest since 2021, driven by short liquidations and technical momentum.

- $105M in short liquidations above $4,000 fueled bullish pressure, with traders noting potential market rotations and blow-off rallies.

- Institutional demand added 1.03M ETH ($4.17B) to holdings, while spot ETFs saw $537M inflows, signaling renewed interest.

- Technical indicators highlight $4,100 as key resistance, with analysts projecting potential $4,400–$4,500 short squeezes or $10,000+ price targets.

Ether (ETH) surged to $4,250 on July 20, 2025, marking its highest level since December 2021, driven by a wave of short liquidations and strong technical momentum. The price breakout above $4,000—unseen for over a year—triggered approximately $105 million in short liquidations, representing nearly half of all crypto short positions closed that day. Over the two-day period, total ETH short liquidations reached $207 million, with 24-hour liquidations hitting $129 million [1].

The sudden upward momentum attracted attention from traders across the board. The forced buy-ins from short sellers added to the

bullish
pressure, with Eric Trump, son of former U.S. President Donald Trump, commenting on X that it was satisfying to see bearish positions “get smoked” [1]. Crypto trader Miles Deutscher noted that the move could signal a three-phase market rotation, beginning with an ETH-led mini altcoin season before shifting back toward
Bitcoin
and potentially ending in a blow-off rally for smaller tokens [1].

Despite the positive momentum, caution has also emerged. Michaël van de Poppe, a crypto analyst, warned that buying ETH at current elevated levels carries significant risk and suggested that ETH ecosystem projects might offer better returns if the bullish trend continues [1]. Santiment, a market data firm, reported a sharp increase in bullish sentiment among retail traders following the $4,000 breakout, a pattern historically associated with short-term market cooling [1].

Institutional demand has added further support to the bullish case. According to EmberCN, unknown whales and institutions have accumulated over 1.03 million ETH, valued at about $4.17 billion, since July 10, with an estimated average entry price of $3,546 [1]. Spot ETH ETFs also saw $537 million in inflows over the past four trading days, according to Farside data, signaling increased institutional interest [1].

Prominent traders have also been adjusting their positions. Arthur Hayes, co-founder of BitMEX, reversed a $8.3 million sell-off from a week earlier, purchasing $10.5 million in ETH above $4,150. Hayes humorously remarked on X: “Had to buy it all back… I pinky swear, I’ll never take profit again” [1].

Technical indicators show ETH holding support between $4,155 and $4,160 following profit-taking near $4,200. Trader Ash Crypto noted that $4,100 has now become a key resistance level, and a breakout could trigger a short squeeze pushing prices toward $4,400–$4,500 within hours [1].

Fundstrat’s Tom Lee drew a comparison between Ether’s current trajectory and Bitcoin’s 2017 bull run, projecting prices as high as $16,000. Some retail analysts also see potential for ETH to reach $10,000 or more in this cycle [1].

As of the latest available data, ETH was trading at $4,192, up 6.7% in the past 24 hours, according to Binance [1].

Source: [1] Ether Jumps To $4250, Highest Since 2021, As Short ... (https://financefeeds.com/ether-jumps-to-4250-highest-since-2021-as-short-liquidations-fuel-rally/)