Ether Surges Past $4K, Wipes Out $105M in Short Positions

Ether (ETH) led the crypto market in short position liquidations on Friday as its price surged past $4,000 for the first time since December 2024, sparking renewed optimism and talk of a potential short squeeze. 

The move prompted the U.S. President Donald Trump’s son, Eric Trump, to weigh in on social media, celebrating the losses faced by bearish traders.

“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 posted on X.

According to CoinGlass data, approximately $105 million in Ether short positions were liquidated in the past 24 hours, making up 53% of the $199.61 million in total crypto short liquidations for the day. Ether’s price climbed as high as $4,060 before slightly retreating to $4,221 at the time of writing, marking an 8% daily gain.

Ether Traders Eye $4,100 as Key Resistance

Crypto analyst Ash Crypto pointed to $4,100 as a critical resistance level. “If ETH breaks $4,100, it could trigger a short squeeze which will send ETH to $4,400–$4,500 in just a few hours,” he said. The potential for such a move has caught the attention of market participants who see aggressive short covering as a catalyst for rapid price acceleration.

The concept of a short squeeze — where traders betting against the asset are forced to buy back at higher prices to cover losses — has historically led to sharp rallies in crypto markets. For Ether, crossing $4,100 could trigger a wave of liquidations and buying pressure.

ETH recent rally mirrors rising enthusiasm in the broader market, with Bitcoin also showing strength amid increased institutional participation and ETF inflows.

Bullish Sentiment Builds on ETF Demand

Industry analysts note that institutional interest in Ether is on the rise, particularly through spot ETH ETFs. Farside data further shows these funds have attracted roughly $537 million in inflows over the past four trading days.

Prominent crypto trader Moustache made a bold forecast, suggesting Ether could climb above $10,000 in the current cycle. Meanwhile, Fundstrat co-founder Tom Lee compared ETH’s present momentum to BTC’s breakout run in 2017, projecting a possible peak near $16,000.

With key resistance levels approaching and ETF inflows strengthening, traders and analysts alike are closely watching whether Ether’s breakout will sustain.