Ethereum Price Surges On Short Liquidation Squeeze & Strong Market Momentum

Ethereum (ETH) is performing outstandingly in the broader crypto market, with its price rising 6.67% over the past 24 hours. ETH  Bullish impact driven by a $105 million short liquidation squeeze, institutional ETF inflows, and bullish technical momentum.

Source: CoinMarketCap

At the time of writing ETH price is trading at $4,181.11, marking the highest resistance line this month. Its market volume surged 7.6% to $47.61 billion, reflecting strong confidence in investors amid volatility. As per CoinMarketCap, ETH’s total market cap reached $505.58 billion, an increase of 7% over the previous day.

Ethereum Short-term Liquidation Squeeze Domino Effect (Bullish Impact)

Ethereum experienced liquidation worth about $105 million in short positions over the past 24 hours, after the ETH price surged above $4127. This triggered a cascade of forced buybacks, amplifying the rally. Traders are panicking over this situation amid volatility.

Source: X

According to the lookonchain data, a week ago, when Ethereum saw bearish support, whale 0x3c9E panic sold $38,582 ETH worth about $136.89million at $3,548 amid the drop. Today, as the ETH price recovers, they bought back 1,800 $ETH with a total price $7.22 million at a much higher price of $4,010.

Ahead, if Ethereum maintains $4100 price level, the next target to set may be $4500 to $4700 as per the volume market and open interest in the market. However, technical indicators and sentiment remain positive.

Technical Breakout Momentum (Mixed Impact)

The Relative Strength Index (RSI) seven-day chart is 71.19 – nearing overbought territory but not extreme. On the other hand, Moving Average Convergence Divergence (MACD) indicates a bullish crossover pending despite -10.95 histogram.

According to the Fibonacci extension, the Ethereum price is holding $4100 price level in the 24 hours to the next target of $4,425–4,879. 

Related Reading | Ethereum Price Surges As ETF Inflows Boost Market Confidence & Momentum

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