Ethereum News Today: Ethereum Surges Past $4,000 Triggers $356M Short Liquidation

Ethereum's price surged past $4,000, triggering the liquidation of over $200 million in short positions as the market experienced a sharp short squeeze. The rapid price movement, fueled by strong buying pressure and institutional activity, saw short positions wipe out over $356 million in 24 hours, with more than $110 million liquidated within an hour as ETH broke through key resistance levels [1][2][3]. This event marked a significant shift in market sentiment, favoring long positions and institutional confidence in Ethereum’s upward trajectory.

The surge followed Ethereum’s breakout from a multi-year symmetrical wedge pattern, ending a long consolidation phase and signaling the start of a new bullish trend. The price gained 5.84% in a single day, reaching $4,191.02, with strong volume supporting a series of higher highs [4]. Analysts such as Captain Faibik have cited historical parallels to suggest a potential move toward $12,000 in the next market cycle, based on similar breakout patterns observed in the past [4].

Institutional interest played a key role in reinforcing the bullish momentum. BlackRock reportedly acquired over 65,000 ETH, valued at approximately $271.8 million, signaling confidence in Ethereum’s long-term value. This large-scale accumulation is typically seen as a positive catalyst for price appreciation and increased market participation [5]. The purchase helped absorb downward pressure, stabilizing the price and encouraging further buying.

Public endorsements from high-profile figures also contributed to the upward trend. Eric Trump warned traders to “stop betting against Bitcoin and Ethereum,” a statement that coincided with Ethereum’s sharp rise and the liquidation of over $356 million in short positions [6]. Such remarks from influential individuals often amplify market movements by drawing in new investors and reinforcing positive sentiment.

The surge triggered a broader short squeeze across the crypto market, with over $817 million in short positions at risk of liquidation as Ethereum outperformed expectations. This dynamic intensified pressure on short sellers while accelerating buying momentum as traders rushed to cover their positions or align with the upward trend [7].

While the $12,000 price target for Ethereum appears ambitious, it is not implausible given the current market conditions. The ability of Ethereum to maintain bullish traction will depend on its performance against key support levels and its navigation of potential macroeconomic headwinds. Continued institutional interest and favorable technical indicators provide a strong foundation for such a move, though the crypto market remains inherently volatile and subject to rapid shifts in sentiment [8].

Source:

[1] CoinGape, https://coingape.com/eric-trump-warns-stop-betting-against-btc-eth/

[2] Coinpedia, https://coinpedia.org/crypto-live-news/

[3] CoinCentral, https://coincentral.com/say-goodbye-to-cryptocurrency-hoarding-anxiety-earn-a-stable-22800-daily-through-ethransaction-cloud-mining/

[4] Coingape, https://coingape.com/markets/analyst-predicts-ethereum-price-12k-after-major-breakout-eric-trump-warns-short-sellers/

[5] Bitcoin Insider, https://www.bitcoininsider.org/article/282235/best-altcoins-buy-now-ethereum-blasts-past-4k-and-sparks-altcoin-boom-hype

[6] Bitcoin Insider, https://www.bitcoininsider.org/article/282187/ethereum-price-surges-above-4000-4-reasons-why-eth-climb-may-continue

[7] Coinedition, https://coinedition.com/news/