Ether (ETH) saw the largest short position wipeout of the day across all crypto assets on Friday as its price surpassed $4,000, with some analysts saying it could be setting the stage for a short squeeze.
The rally led to Eric Trump, son of US President Donald Trump, taking a jab at bearish traders.
$4,100 is now key for the “short squeeze,” says trader
“It puts a smile on my face to see ETH shorts get smoked today. Stop betting against BTC and ETH - you will be run over,” Trump said in an X post on Friday.
On Friday, approximately $105 million in Ether short positions were liquidated, representing about 53% of the total $199.61 million in shorts liquidated from the entire crypto market, as Ether surpassed the $4,000 price level for the first time since December 2024, according to CoinGlass.
Ether’s price climbed as high as $4,060 over the day, representing a 4.6% increase over the past 24 hours, before retracing to $4,015 at the time of publication, according to Nansen.
Crypto trader Ash Crypto said the real test will be the $4,100 price level, which he called a “major resistance.”
“If ETH breaks $4100, it could trigger a short squeeze which will send ETH to $4400-$4500 in just a few hours,” Ash Crypto said.
Ether optimism is rising in the crypto industry
Crypto trader Ted said: “It’s never been this bullish in my opinion,” pointing to the increasing institutional interest in Ether and demand for Ether ETFs.
Related: Ethereum top is in? ETH sell-pressure hits $419M, second-highest level ever
Over the past four trading days, spot Ether ETFs have seen around $537 million in inflows, according to Farside data.
Recently, there have been some major price predictions for Ether. After it broke past $4,000, crypto trader Moustache said: “I know it sounds wild, but I think ETH will go to $10,000+.”
Meanwhile, Fundstrat co-founder Tom Lee said on Thursday that Ether is having its “Bitcoin 2017 moment” and may reach as high as $16,000.
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