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Ethereum Breaches $2,600 Resistance Amid Short Squeeze and Institutional Demand

Ethereum has surged past the critical $2,600 resistance level, recording a 24-hour trading volume of $22.7 billion. This breakthrough signals robust market confidence and establishes a foundation for continued bullish momentum as a significant short squeeze amplifies upward price pressure.

Leveraged short positions initiated in early 2023 are being liquidated with Ethereum’s rise above $2,575, accelerating gains across markets. The asset simultaneously demonstrates increased strength against Bitcoin, rising 4.5% to trade at 0.02382 BTC, highlighting its relative market outperformance.

Ethereum’s capped circulating supply of 120.7 million tokens remains a foundational support factor, reinforcing its position as the second-largest cryptocurrency by market capitalization. Institutional demand further validates the breakout, combining with technical dynamics to fuel positive sentiment.

Analysts identify $2,650 as the next decisive price threshold. The convergence of supply scarcity, institutional inflows, and ongoing short liquidations appears poised to test this resistance level in the near term.

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