Ether preps record short squeeze as analysis sees $4K ETH price 'soon'

Key Points

1. A 10% increase in ETH price could liquidate $1 billion in short positions, potentially pushing ETH to $4,000.

2. ETH/USD has gained 20% in the past week, nearing its year-to-date high of $3,610, and is up over 150% from its 2025 low.

3. Analysts suggest the current market conditions could lead to a continuation of the short squeeze, further boosting ETH prices.

4. Bitcoin's dominance in the crypto market has dropped to 61.4%, its lowest since March, indicating a shift in trader focus towards altcoins like ETH.

5. Traders warn that if the market becomes overheated, capital may flow back into Bitcoin and stablecoins.