Ethereum’s decisive price surge beyond the crucial $3,736 resistance level has ignited a massive liquidation event across major centralized exchanges, eliminating $1.767 billion worth of short positions.
This marks one of the largest short squeezes recently recorded on mainstream trading platforms, representing a 35% increase in liquidation volume compared to Ethereum’s previous major short squeeze event. The breakout occurred amid substantial buying pressure and positive market sentiment driving ETH’s upward momentum.
Traders are adopting cautious approaches toward heightened volatility following the liquidations, with many adjusting strategies to mitigate potential losses from abrupt price movements. The scale of this event signals a significant market shift, substantially reducing bearish pressure while underscoring Ethereum’s resilience and long-term growth potential.
This liquidation cascade highlights the dynamic nature of cryptocurrency markets where technical breakouts can rapidly intensify bullish momentum and force position unwinds at unprecedented scale.