Ethereum short squeeze risk is rising as over $10 billion in ETH shorts face liquidation if price climbs toward $4,359; shrinking bearish momentum, rising whale accumulation, and negative funding rates set the stage for rapid short-covering and volatile upside 0 $10B in ETH shorts at risk near $4,359 Whale buys (Bitmine ~234,846 ETH) and fading bearish indicators suggest weakening 1 technicals: RSI ~45 (neutral), DMI shows declining –DI; 20/50 EMAs act as immediate 2 short squeeze: ETH shorts >$10B near $4,359; monitor funding rates, whale flows, and key EMA breaks for a potential breakout — read 3 Ethereum about to trigger a short squeeze?
Ethereum short squeeze probability has increased as a large pool of leveraged short positions sits vulnerable near the $4,359 4 bearish momentum, negative funding rates and significant whale accumulation raise the odds of a cascade of liquidations if buyers sustain upward 5 evidence shows traders may be ignoring bullish signs? Funding rates stayed negative last week, indicating persistent short-side conviction. Meanwhile, on-chain monitoring platforms reported elevated whale purchases and large exchange outflows. Bitmine’s reported purchase of 234,846 ETH (approx. $963M) enlarged a top holder’s supply, signaling accumulation by smart money despite public pessimism. , "description": "Ethereum short squeeze risk rises as more than $10 billion in ETH shorts face liquidation pressure near $4,359 amid whale accumulation and fading bearish indicators." , Frequently Asked Questions What triggers a short squeeze in Ethereum?
A short squeeze is triggered when price rises quickly, forcing leveraged short positions to cover (buy) to close 6 ETH’s case, clustered stops and high open interest near $4,359 could create cascading liquidations and sharp upside 7 should traders manage risk around a potential squeeze? Use defined position sizes, set protective stops below key support, avoid heavy leverage, and monitor funding rates and whale activity to reduce unexpected liquidation risk during volatile 8 Takeaways Large short exposure : Over $10B in ETH shorts creates vulnerability near $4,359. Smart money accumulation : Significant whale buys and exchange outflows suggest accumulation by large 9 setup : RSI at neutral, fading –DI on DMI, and price near 20/50 EMAs — breakout depends on sustained buying 10 snapshot and technical context At press time, Ethereum traded around $4,173 after a modest 11 sat near 45, indicating neutral 12 DMI showed declining bearish strength as the –DI began to flatten against the +DI.
Price action remains capped by the 20 and 50-day EMAs, which now serve as critical decision points for bulls and 13 rates remained negative through last week, reflecting a dominant short bias — a condition that historically precedes squeeze dynamics when buyers step in. On-chain analytics providers and derivatives aggregators (reported by CryptoQuant and exchange interest trackers) show concentrated leverage levels and clustered short positions in the $4,300–$4,400 14 activity further supports the thesis. Bitmine’s reported purchase of roughly 234,846 ETH (reported value ~ $963M) increased top-holder balances, suggesting accumulation by entities prepared to hold through 15 mentions: CryptoQuant, TradingView, X (all cited as plain text, no external links).
Ethereum ETH might be on the edge of something big, and short sellers are 16 $10 billion worth of ETH shorts are now hanging by a 17 price breaks toward the $4,359 mark, it could spark a liquidation cascade that sends ETH 18 recent downtrend looks like it’s losing steam, and bullish momentum is 19 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 20 Rates stayed negative throughout last week, meaning traders were paying to stay 21 kind of bearish sentiment often shows up right before a reversal.), bringing their total stash to over $10.8 billion.
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