Ethereum Price Surge: $105M Ether Shorts Obliterated, Delighting Eric Trump

A remarkable event recently captivated the cryptocurrency world. A staggering $105 million in Ether (ETH) short positions were abruptly wiped out. This massive liquidation occurred as the Ethereum price surge propelled ETH past the significant $4,000 mark. This impressive market movement brought a notable reaction from Eric Trump, son of former U.S. President Donald Trump. He publicly expressed his satisfaction, cautioning bearish traders against betting against leading cryptocurrencies like Bitcoin and Ether. This incident underscores the volatile yet often rewarding nature of the crypto market, particularly for those on the right side of a major price swing.

Massive ETH Liquidations Fuel Ethereum Price Surge

On a recent Friday, Ether experienced the largest short position wipeout across all crypto assets. Its price climbed above $4,000, a level not seen in eight months. This dramatic rally led to significant ETH liquidations. Approximately $105 million in Ether short positions were liquidated. This figure represented about 53% of the total $199.61 million in shorts liquidated from the entire crypto market. CoinGlass data confirms these substantial liquidations. Furthermore, total Ether liquidations over the past 24 hours reached $129.16 million, highlighting the intense market activity.

Initially, Ether’s price surged as high as $4,060. This represented a 4.6% increase within 24 hours. Subsequently, it retraced slightly to $4,015. This rapid ascent caught many bearish traders off guard. Consequently, their short positions faced automatic closure due to insufficient margin. This mechanism protects exchanges from losses. Ultimately, it also amplifies price movements, especially during a short squeeze.

Eric Trump’s Stance on Crypto and the Ether Short Squeeze

The notable market event quickly drew attention from prominent figures. Eric Trump crypto comments followed the Ether price surge. He took to X (formerly Twitter) to express his views. “It puts a smile on my face to see ETH shorts get smoked today,” Trump stated. He further advised, “Stop betting against BTC and ETH – you will be run over.” His statement reflects a growing sentiment among some public figures who support digital assets. This public endorsement from a member of a high-profile family adds an interesting layer to the cryptocurrency narrative.

Eric Trump has previously shown interest in the cryptocurrency space. His father, Donald Trump, has also recently embraced digital assets, launching NFT collections and accepting crypto donations. This shift in stance from skepticism to cautious embrace by the Trump family highlights the increasing mainstream acceptance and political relevance of cryptocurrencies. Consequently, such comments can influence public perception and investor confidence, particularly among their supporters.

Understanding the Mechanics: What is an Ether Short Squeeze?

The term “short squeeze” is central to understanding Ether’s recent performance. Essentially, a short squeeze occurs when a cryptocurrency’s price rises sharply. This forces traders who bet against the asset (short sellers) to buy it back to limit their losses. This sudden buying pressure further pushes the price up, creating a cascading effect. For Ether, this meant a rapid increase in demand, exacerbating the price rally.

Key aspects of an Ether short squeeze include:

• Initial Price Rise: An unexpected upward movement in the asset’s price.
• Margin Calls: Short sellers receive calls to deposit more collateral or close their positions.
• Forced Buying: To cover their positions, short sellers must buy the asset. This adds buying pressure.
• Accelerated Rally: The increased buying further drives the price up, leading to more liquidations.

This cycle can lead to explosive price movements. Traders like Ash Crypto highlighted the $4,100 price level as a “major resistance.” He suggested that if ETH breaches $4,100, it could trigger an even larger short squeeze. This could potentially send ETH to $4,400-$4,500 in just a few hours. Therefore, monitoring these key resistance levels becomes crucial for market participants.

Rising Institutional Interest and the Role of Ethereum ETFs

Beyond technical factors, increasing institutional interest significantly contributes to Ether’s bullish outlook. Crypto trader Ted noted, “It’s never been this bullish in my opinion.” He specifically pointed to the rising demand for Ethereum ETFs. These exchange-traded funds offer traditional investors regulated access to Ether without directly holding the cryptocurrency. This makes investment more accessible and appealing.

Over the past four trading days, spot Ether ETFs have seen substantial inflows. Farside data indicates approximately $537 million in fresh capital during this period. This influx of institutional money signals growing confidence in Ethereum’s long-term potential. Furthermore, the approval of Bitcoin spot ETFs earlier this year set a precedent. Many analysts anticipate similar approvals for Ether, which could unlock even greater institutional investment. Consequently, this sustained demand could provide a robust floor for Ether’s price.

Bold Price Predictions and Ethereum’s Future Outlook

The recent price action has fueled optimistic forecasts for Ethereum’s future. After ETH surpassed $4,000, crypto trader Moustache made a bold prediction. “I know it sounds wild, but I think ETH will go to $10,000+,” he stated. This reflects a belief in Ethereum’s underlying technology and its expanding ecosystem. Ethereum remains the leading platform for decentralized applications (dApps), NFTs, and decentralized finance (DeFi).

Moreover, Fundstrat co-founder Tom Lee offered an even more ambitious outlook. On Thursday, he suggested that Ether is experiencing its “Bitcoin 2017 moment.” Lee believes ETH may reach as high as $16,000. This comparison to Bitcoin’s historic bull run in 2017 underscores the immense growth potential analysts see in Ethereum. Its ongoing developments, such as the Dencun upgrade and future scalability improvements, further strengthen its long-term prospects. Ultimately, these factors position Ethereum as a critical asset in the evolving digital economy, attracting both retail and institutional investors alike.