Ethereum Near ATH as $2.35B Shorts Face Liquidation
Ethereum nears all-time high with $2.35B in shorts at risk. Could ETH break $5K in this bullish rally?
- ETH is just $600 away from its ATH.
- $2.35B in short positions could be liquidated.
- Analysts eye $5K ETH if breakout holds.
Ethereum (ETH) is once again the center of market attention, trading just $600 shy of its all-time high. The second-largest cryptocurrency by market capitalization has been on a strong upward trajectory, driven by renewed investor confidence, rising on-chain activity, and growing institutional interest.
With prices hovering close to this critical level, traders are closely watching for a breakout that could trigger significant market shifts.
$2.35 Billion in Shorts at Risk
According to market data, approximately $2.35 billion worth of short positions could be wiped out if Ethereum breaks its current resistance and sets a new record. Such a short squeeze could amplify buying pressure, potentially accelerating ETH’s climb toward the $5,000 mark.
Historically, large-scale liquidations in the crypto market have led to sharp price movements, as traders scramble to close positions and momentum buyers enter the scene.
Could This Be the Road to $5K ETH?
If Ethereum manages to sustain a breakout above its all-time high, many analysts believe the $5,000 milestone could be within reach. Factors such as continued growth in decentralized finance (DeFi), Ethereum’s role in NFT transactions, and the broader recovery of the crypto market are contributing to this optimistic outlook.
However, as with all crypto rallies, volatility remains a constant risk. Traders are advised to monitor key resistance levels, market sentiment, and potential macroeconomic influences that could impact price direction.
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