Ether (ETH) is showcasing significant price growth, leading to a historic short squeeze in the crypto market. Analysts expect ETH to reach $4,000 soon.
Market Analysis and Ether's Dynamics
According to The Kobeissi Letter, Ether has shown impressive growth, adding over $150 billion to its market cap since July 1. As traders continue to open short positions, ETH/USD has demonstrated a 20% increase over the past week.
Potential Impact of the Short Squeeze
It is estimated that if the price of Ether rises by 10%, it could lead to the liquidation of another $1 billion in short positions. Many of these shorts are leveraged, further increasing the pressure on ETH's price. Analysts predict that $4,000 may be achieved very soon.
Bitcoin Dominance and Its Effect on Altcoins
Meanwhile, Bitcoin's dominance in the crypto market has dropped to 61.4%, the lowest since March. This decline is attributed to increased activity in altcoins, such as Ether and XRP. Traders are monitoring the market for further fluctuations.
With the ongoing short squeeze and rising Ether prices, the cryptocurrency market shows significant momentum. Such events can impact the overall landscape and lead to further changes in Bitcoin and altcoin dominance.
