$9.5B in short liquidations loom if ETH rises 20%, adding pressure toward higher prices.
Ethereum’s weekly candle closed at $4,179, pushing firmly above the $4,000 level. This area had acted as resistance in earlier sessions and is now serving as support. The shift above this range is being watched closely by traders looking for signs of strength.
Several drops below short-term support earlier this year quickly reversed, trapping sellers. These repeated recoveries suggest that buyers remain active and responsive at lower levels. With price now holding above $4,000, focus has turned to the $5,000 zone, where price has previously met resistance.
Price action on the daily chart continues to follow a wave pattern that began earlier this year. After reaching a high in mid-summer, Ethereum pulled back in what was expected to be a wave (iv) correction. That move found support near $3,665, lining up with the 38% Fibonacci level and the 21-week EMA.
The bounce from this zone keeps the current wave structure in place. If the next leg higher unfolds, Ethereum could move toward projected levels between $6,233 and $6,922. These are common targets based on previous wave extensions. A move below $3,370, however, would cancel this view and suggest a deeper retracement.
Ethereum’s current price also puts pressure on short positions across major exchanges. According to data tracked over the past 30 days, a 20% price increase could force the closure of around $9.5 billion in shorts. In comparison, a 20% drop would affect about $2.62 billion in long positions.
This shows a clear difference in exposure between the two sides. As price moves higher, more short positions become vulnerable. Platforms like Binance, Bybit, and OKX show rising liquidations of short positions as price tests higher ranges. This situation could drive further upside movement if volume remains steady.
Ethereum’s 24-hour trading volume stands at over $56 billion. The price has climbed 8.23% in the same period, though it remains 8.87% lower than seven days ago. This mixed movement reflects recent volatility but also shows that buyers have stepped in after last week’s drop.
Following the weekly close, Ash Crypto stated, “$5,000 is coming early November.” While this estimate remains to be seen, current chart structure and liquidation data point toward increased buying pressure unless key support is lost. Traders are now watching the $4,000 zone closely as the next move takes shape.
