Key points:
- Ether is in the midst of a historic short squeeze, analysts report.
- A 10% price surge could trigger another $1 billion in short liquidations.
- These liquidations may drive ETH back to the $4,000 mark.
Ether is “making history” as a surge in ETH price triggers a record-breaking short squeeze.
According to fresh analysis from trading resource The Kobeissi Letter on Friday, ETH/USD is now on track to hit $4,000 “soon.”
Ether shorts face mounting risk as ETH targets new 2025 highs
Ether’s price strength has emerged as a standout in July’s crypto market, with altcoins gradually tracking Bitcoin’s upward momentum.
As the leading altcoin by market cap, Ether is delivering a rare blow to short positions, according to The Kobeissi Letter.
“Ethereum is making HISTORY — we’re witnessing one of the BIGGEST short squeezes in crypto history,” the firm wrote in a dedicated thread on X.
“Ethereum has added +$150 BILLION in market cap since July 1st, days after net SHORT exposure hit record highs.”
Data from TradingView shows that ETH/USD has surged 20% in the past week alone.
Local highs of $3,610 on Bitstamp are nearing the year-to-date peak set in early January. From its 2025 low, the pair has climbed more than 150%.
Kobeissi now projects not only a move to $4,000 for Ethereum, but also a continued short squeeze.
“If Ethereum climbs another 10%, an additional $1 billion in short positions will be liquidated,” it noted, citing data from monitoring platform CoinGlass.
“Furthermore, the fact that many of these shorts are leveraged is adding even more pressure. Ethereum could see $4,000 soon.”
Bitcoin dominance falls to its lowest level since March
Bitcoin continues to consolidate below the key psychological level of $120,000, while traders shift capital into altcoins in search of faster gains.
Meanwhile, Bitcoin’s dominance in the total crypto market cap has broken its multi-year uptrend, dipping to 61.4% this week — the lowest level since March.
“$BTC.D has only dropped 4.5% from its local highs, yet the impact on altcoins and ALT/BTC pairs is already clear,” noted popular trader Daan Crypto Trades on X Friday.
He attributed the decline in Bitcoin dominance primarily to strong performances from ETH and XRP.
However, he cautioned that when the market starts to look overheated or unstable, capital is likely to flow back into Bitcoin and cash or stablecoins — similar to the behavior seen in late 2024.
