Main highlights:
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Ether is presently triggering a short squeeze that is remarkable in cryptocurrency history, according to analysis.
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A 10% rise in price would lead to an additional $1 billion in liquidated shorts.
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Short positions should now contribute to a $4,000 ETH price recovery.
Ether (ETH) is “creating history” as ETH price surges initiate a short squeeze for the record books.
New analysis from trading platform The Kobeissi Letter released on Friday now anticipates ETH/USD reaching $4,000 “soon.”
Ether shorts face consequences as ETH aims for 2025 peaks
Ether’s price strength has emerged as one of July’s notable crypto market highlights as altcoins gradually start to follow Bitcoin (BTC) upwards.
As the largest altcoin by market capitalization, Ether is punishing short positions at an unprecedented rate, reports Kobeissi.
“Ethereum is creating HISTORY: We are currently witnessing one of the LARGEST short squeezes in crypto history,” it summarized in a specific thread on X.
“Ethereum has gained +$150 BILLION in market cap since July 1st, days after net SHORT exposure reached record levels.”
Information from Cointelegraph Markets Pro and TradingView confirms that ETH/USD climbed 20% over the past week alone.
Local peaks of $3,610 on Bitstamp almost match the year-to-date record observed in early January. In comparison to its 2025 low, the pair has increased by over 150%.
Now, Kobeissi not only foresees $4,000 as the next milestone but also the continuation of the short squeeze.
“If Ethereum increases another 10%, an additional $1 billion of shorts will be liquidated,” it calculated alongside data from monitoring tool CoinGlass.
“Moreover, the fact that many of these shorts are leveraged adds even more pressure. Ethereum could see $4,000 soon.”
Bitcoin dominance declines to March lows
Bitcoin, in contrast, continues to consolidate beneath the psychologically important $120,000 threshold.
Related: Bitcoin golden cross that sparked 2,000% gains for BTC is already occurring
Concurrently, capital is reportedly shifting into altcoins as traders anticipate quicker returns.
Bitcoin’s share of the total crypto market capitalization has halted a multi-year upward trend, falling to 61.4% this week — its lowest level since March.
“$BTC.D has only decreased 4.5% from the recent highs and we are already observing its impact on altcoins and ALT/BTC pairings,” popular trader Daan Crypto Trades noted on X Friday.
Daan Crypto Trades attributed the dominance decline to “outperformance” from ETH and XRP (XRP) in particular.
“When the market eventually appears extremely overheated or unstable, capital will likely revert back to $BTC & Cash/Stables,” he cautioned, comparing it to late 2024.
This article does not contain investment recommendations or advice. Every investment and trading action carries risk, and readers should conduct their own due diligence before making decisions.
