- Ethereum saw $500 million in shorts liquidated, signaling a potential bullish reversal as seller exhaustion hits an 18-month low.
- However, ETH continues to lag behind Bitcoin, struggling to break above the 50-week Moving Average and showing weaker profitability relative to BTC.
Ethereum Flashes Bullish Signals Amid Market Reset
Ethereum (ETH) just sent shockwaves through the crypto markets after a staggering $500 million in shorts were liquidated during a major short squeeze on June 16. This dramatic move followed heightened selling pressure and growing investor concerns—but it could also mark a potential turning point for the second-largest crypto by market cap.
Despite the surge, ETH continues to struggle against Bitcoin (BTC), trading above $2,400 but remaining below a key resistance: the 50-week Moving Average (MA). According to analyst İbrahim Cosar, a breakout above this level could trigger the next major rally, just as it did during the rallies of October 2023 and November 2024.
Seller Exhaustion Hits 18-Month Low—A Bullish Bottom?
The Seller Exhaustion Constant—a metric combining supply in profit and 30-day volatility—has dropped to its lowest levels since January 2024. This signals potential seller fatigue and suggests that ETH might be forming a low-risk bottom. When both losses and volatility align at historic lows, a reversal often follows.
However, ETH’s struggle is evident when compared to BTC. The ETH/BTC Spent Output Profit Ratio (SOPR) continues to trend below 1, showing that Ethereum investors are realizing fewer profits than their Bitcoin counterparts. This underscores ETH’s continued weakness despite bullish potential.
Bitcoin Sets the Bar High—Can Ethereum Catch Up?
While Ethereum searches for momentum, Bitcoin holds steady above $100,000 and could skyrocket further. Analysts suggest a 120% surge is possible in 2025 based on historical 3-year cycles and the halving pattern. Some predictions even put BTC’s potential high at $466,257, assuming a repeat of the previous cycle’s 750% gain.
With over $131 billion locked in Bitcoin ETFs, institutional support is only growing—another factor that could widen the BTC-ETH gap unless Ethereum breaks key technical resistance.
Ethereum’s recent short squeeze and historic seller exhaustion hint at an incoming bullish reversal. But unless ETH can decisively break above its 50-week MA and outperform BTC, its path to recovery may remain bumpy.
