- Ethereum surged nearly 7% after a ceasefire-triggered short squeeze wiped out over $100M in ETH short positions.
- A breakout above $2,750 could pave the way for a bullish run toward the $3,000 mark.
Short Sellers Get Crushed in Massive ETH Liquidation
Ethereum (ETH) staged a surprise rally over the past 24 hours, jumping nearly 7% as traders liquidated over $100 million in short positions. Former President Donald Trump brokered a ceasefire agreement between Israel and Iran, which stabilized market sentiment and triggered a crypto-wide short squeeze.
Ethereum trading volumes soared by 34%, reflecting renewed trader confidence.
More than $335 million in shorts were liquidated across the crypto market, with ETH’s liquidation numbers nearly matching Bitcoin’s. The rapid price movement caught bearish traders off guard, forming what analysts describe as a classic bear trap — a false signal of a downward breakout that quickly reverses.
Ethereum Price Targets: Eyes on $2,750 and Beyond
Despite the surge, Ethereum still faces critical resistance at $2,750. Breaking this level would open the door to a bullish push toward $3,000 — a price target that has now resurfaced on the radar. For this rally to gain further strength, ETH must also break above the neckline of an inverse head and shoulders pattern at $2,450. A confirmed breakout followed by a successful retest of this level would signal a strong bullish reversal.
Market indicators, however, remain cautious. ETH still trades below its key short-term and long-term EMAs, and the Relative Strength Index (RSI) on the daily chart hasn’t fully turned bullish. Yet on the lower timeframes, RSI shows strong buying pressure, indicating that buyers could quickly build momentum if they break through resistance levels.
Market Sentiment Shifts as Bulls Regain Control
The Fear and Greed Index has climbed from 37 (fear) to 47 (neutral), highlighting a shift in investor sentiment. Traders are now watching closely to see if Ethereum can ride this momentum shift toward a full trend reversal.
As geopolitical tensions cool and liquidations hit short positions, Ethereum bulls gain a window of opportunity. If ETH breaks through the $2,750 ceiling, the long-awaited run to $3,000 could finally become reality.
