Ethereum News Today: Ethereum Surges 20.6% as Short Squeeze Intensifies Above $4,300

Ethereum's price has surged by 20.6% over the past week, breaking through multiple resistance levels amid a steady uptrend. This rise has intensified the squeeze on short positions, particularly in the $4,300–$4,400 range, where a dense cluster of stop-loss orders triggers automatic buy activity and further upward price movement. As a result, Ethereum’s price resilience has made shorting one of the riskiest strategies in the current market environment [1].

Large investors, or “whales,” have been aggressively accumulating Ethereum, with one major player reportedly acquiring 221,000 ETH (approximately $947 million) in just a week via FalconX, BitGo, and Galaxy Digital. These purchases are reducing sell-side liquidity and tightening the window for short sellers to exit without incurring losses. Some traders are attempting to stave off liquidation by injecting millions in USDC margin, but as Ethereum continues its upward trajectory, many high-leverage positions are already being wiped out [1].

Market indicators also suggest a bearish outlook for short traders. Funding rates for long positions in the futures market briefly reset, yet Ethereum quickly rebounded, indicating strong spot market demand and ongoing short covering rather than a waning interest in long positions. Over-the-counter (OTC) desks are also witnessing steady institutional inflows, which quietly reduce liquidity without causing immediate price spikes. This subtle tightening of supply further supports the bullish narrative [1].

Key technical levels are reinforcing Ethereum’s upward momentum. The $4,050–$4,100 range has acted as strong support, and unless Ethereum decisively breaks below $3,950 on high volume, shorting remains an unfavorable trade. Analysts note that only a move under $3,900 would open up safer short entry points. Meanwhile, macroeconomic conditions are also favorable, with global liquidity remaining healthy and institutional inflows steady. These factors create a multi-pronged bullish environment, making shorting Ethereum akin to betting against a broad coalition of upward drivers [1].

Social sentiment is also shifting in Ethereum’s favor, with ETH regaining dominance in trader conversations and analysts increasingly projecting a higher probability of Ethereum reaching $5,000 than experiencing a deep retracement. This growing optimism is further squeezing short positions, with many analysts warning that short sellers are now at the mercy of market makers who profit from forcing them to cover at escalating prices [1].

Sources:

[1] Ethereum Price Squeeze: Can Shorts Survive $4.3K Breakout? (https://coinmarketcap.com/community/articles/6899ef23169dd92d1050f208/)