Ether Could See $4,000 as Short Squeeze May Trigger $1 Billion Liquidations

Key Points

1. Ether has added over $150 billion in market capitalization since the start of July, coinciding with record-high net short exposure.

2. ETH/USD has surged approximately 20% over the past week, nearing local highs of $3,610, representing a 150% gain from 2025 lows.

3. The ongoing short squeeze is expected to push ETH toward the $4,000 level, with leveraged shorts amplifying market volatility and price momentum.

4. Bitcoin's market dominance has declined to 61.4%, as investors seek higher returns in altcoins like ETH and XRP.

5. A trader's Ethereum short position yielded $1.5 million in unrealized profit, highlighting the market's volatility.