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Ether Surges Past $4,000 Triggering Short Squeeze Warnings

Ether (ETH) experienced a significant price surge, breaking through the $4,000 barrier to reach $4,060. This represented a notable 24-hour gain of 4.6%.

The sharp upward movement led to substantial liquidations in the derivatives market, with $105 million worth of short positions being closed forcibly. Total liquidations across positions surpassed $129 million overall for the same period.

High-profile figures including Eric Trump publicly advised against taking short positions, cautioning that the strong bullish trend made betting against Ethereum risky at this juncture.

Market analysts identified the $4,100 resistance level as the next critical barrier. They suggest a sustained break above this point could trigger a significant short squeeze, potentially driving the price considerably higher, with targets mentioned in the $4,400 to $4,500 range.

The surge is widely attributed by market observers to solid underlying demand and heightened anticipation surrounding the launch of spot Ether exchange-traded funds (ETFs).

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