$10B in Ethereum shorts at risk – Is a squeeze coming?

Key Takeaways

Is Ethereum about to trigger a short squeeze?

Over $10 billion in ETH shorts are at risk if price moves toward $4,359.

Are traders ignoring bullish signs?

Despite negative sentiment, whales are buying, and bearish momentum is fading.

Ethereum [ETH] might be on the edge of something big, and short sellers are sweating.

Over $10 billion worth of ETH shorts are now hanging by a thread. If price breaks toward the $4,359 mark, it could spark a liquidation cascade that sends ETH flying.

The recent downtrend looks like it’s losing steam, and bullish momentum is rising.

Where do we go from here?

Fear in the air, but ETH is unfazed

Despite the gloom in the market, Ethereum’s starting to push higher, and that’s no coincidence.

Funding Rates stayed negative throughout last week, meaning traders were paying to stay short. That kind of bearish sentiment often shows up right before a reversal.

And it’s not just the charts, whales are moving too. Just yesterday, Bitmine bought a jaw-dropping 234,846 ETH (worth $963 million), bringing their total stash to over $10.8 billion.

When the market’s leaning bearish, and the smart money starts buying? That’s usually not the time to be asleep at the wheel.

$10B in shorts and they’re on thin ice

And if the fear wasn’t already backfiring, here’s the kicker: over $10 billion in Ethereum shorts are now dangerously close to liquidation.

If ETH pushes up to that $4,359 level, it could trigger a classic short squeeze, forcing bearish traders to buy back in fast. This would send ETH up.

At that point, it’s a full-on cleanup.

People are bearish, whales are buying, and there’s a mountain of shorts just waiting to get liquidated. If ETH starts moving, things could escalate fast.

Waning bearish pressure

At press time, Ethereum traded at $4,173 after a modest recovery from last week’s dip. The RSI held at 45, showing ETH was in neutral territory.

Meanwhile, the DMI proved fading bearish momentum, with the –DI line beginning to flatten against the +DI.

Price action hovered just below the 20 and 50-day EMAs; a sign of resistance but also potential for a breakout if buyers sustained pressure. Bears are losing steam, and the market is ready for a shift.