Ether saw the largest short position wipeout of the day across all crypto assets on Friday as its price surpassed $4,000, with some analysts saying it could be setting the stage for a short squeeze.
The rally led to Eric Trump, son of US President Donald Trump, taking a jab at bearish traders.
$4.1K is now key for the “short squeeze,” says trader
“It puts a smile on my face to see ETH shorts get smoked today. Stop betting against BTC and ETH – you will be run over,” Trump said in an X post on Friday.
On Friday, approximately $105 million in Ether (ETH) short positions were liquidated, representing about 53% of the total $199.61 million in shorts liquidated from the entire crypto market, as Ether surpassed the $4,000 price level for the first time since December 2024, according to CoinGlass.
Ether’s price climbed as high as $4,060 over the day, representing a 4.6% increase over the past 24 hours, before retracing to $4,015 at the time of publication, according to Nansen.
Crypto trader Ash Crypto said the real test will be the $4,100 price level, which he called a “major resistance.”
“If ETH breaks $4100, it could trigger a short squeeze which will send ETH to $4400-$4500 in just a few hours,” Ash Crypto said.
Ether optimism is rising in the crypto industry
Crypto trader Ted said, “It’s never been this bullish in my opinion,” pointing to the increasing institutional interest in Ether and demand for Ether ETFs.
Related: Ethereum top is in? ETH sell-pressure hits $419M, second-highest level ever
Over the past four trading days, spot Ether ETFs have seen around $537 million in inflows, according to Farside data.
Recently, there have been some major price predictions for Ether. After it broke past $4,000, crypto trader Moustache said, “I know it sounds wild, but I think ETH will go to $10,000+.”
Meanwhile, Fundstrat co-founder Tom Lee said on Thursday that Ether is having its “Bitcoin 2017 moment” and may reach as high as $16,000.
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