- Over $3 billion in Ethereum shorts are in danger.
- ETH nearing the $3,500 resistance level.
- A breakout could trigger a massive short squeeze.
Ethereum is trading close to a major resistance level, and if the bulls manage to push it above $3,500, the crypto market could witness a dramatic shift. Currently, over $3 billion in Ethereum shorts are open across major exchanges, and a breakout could trigger a wave of liquidations.
Shorts are bearish positions that profit when prices fall. But when the price rises instead, short sellers are forced to buy back ETH to cut losses, resulting in a short squeeze. This buying pressure can push prices even higher, creating a cascading effect in the market.
Why $3,500 Is a Key Level
The $3,500 level is a psychological and technical resistance point for ETH. Over the past weeks, Ethereum has made several attempts to break this level but has faced heavy selling pressure. If ETH finally manages to close above $3,500, it would signal strong bullish momentum.
According to on-chain data and futures market analytics, over $3 billion in short positions would be at risk of liquidation. This could lead to a rapid price surge, similar to what has been seen in previous crypto rallies.
What This Means for Traders
If Ethereum breaks $3,500, short sellers could suffer significant losses, and long holders may benefit from the rally. Traders should be prepared for increased volatility, especially as liquidations can add fuel to upward price movements.
For those holding ETH or planning to enter the market, the coming days could be crucial. A successful breakout might not just liquidate shorts but also attract new buyers, pushing Ethereum further toward the $4,000 mark.
Read Also :
- XRP Ledger Sees Highest Circulation Velocity in 2024
- Tether’s Gold Reserves Soar Past Central Banks
- Circle Mints 500M USDC on Solana Blockchain
- XRP On-Chain Activity Hits Record Highs
- $3B in Ethereum Shorts at Risk if ETH Tops $3,500
