Ether (ETH) Eyes $4,000 as Short Squeeze Intensifies
Ether (ETH) is currently undergoing a significant short squeeze, potentially paving the way for a substantial price rebound. Trading resource The Kobeissi Letter suggests ETH/USD could soon reach $4,000.
Ether Shorts Face Pressure as ETH Targets New Highs
Ether's price strength has been a standout in July, with altcoins gradually following Bitcoin's upward trajectory. As the largest altcoin by market capitalization, Ether is putting considerable pressure on short positions.
"Ethereum is making HISTORY: We are currently witnessing one of the LARGEST short squeezes in crypto history," The Kobeissi Letter summarized on X. "Ethereum has added +$150 BILLION in market cap since July 1st, days after net SHORT exposure hit record highs."
Cointelegraph Markets Pro and TradingView data confirm that ETH/USD has gained 20% in the past week alone. Local highs of $3,610 on Bitstamp nearly match the year-to-date record from early January. Compared to its 2025 low, the pair is up over 150%.
Kobeissi anticipates further continuation of the short squeeze, projecting a target of $4,000.
"If Ethereum rises another 10%, another $1 billion of shorts will be liquidated," they calculated, referencing data from CoinGlass. "Furthermore, the fact that many of these shorts are leveraged is adding even more pressure. Ethereum could see $4,000 soon."
Key Points:
- Ether is currently forging a short squeeze that stands out in crypto history, according to analysis.
- A 10% price increase could trigger another $1 billion in liquidated shorts.
- Short positions are expected to fuel a rebound to $4,000.
Bitcoin Dominance Declines
Bitcoin (BTC) is consolidating below the $120,000 mark. Capital is flowing into altcoins, as traders seek quicker returns. Bitcoin’s dominance in the overall crypto market has declined to 61.4% this week, its lowest since March.
Trader Daan Crypto Trades noted on X that the dominance drop is due to the "outperformance" of ETH and XRP.
"When the market is eventually looking extremely overheated or shaky, capital will flee back into $BTC & Cash/Stables," he warned, comparing the situation to late 2024.
Disclaimer: This article does not contain investment advice. Trading involves risk, and readers should conduct their own research before making decisions.
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