Ethereum faced a sharp liquidation of short positions totaling $500 million, which has revived bullish hopes for the market amidst high volatility and global geopolitical tensions.
Short Liquidation in Ethereum
On June 16, 2025, Ethereum experienced a significant liquidation of $500 million in short positions, sparking optimistic expectations among investors. Data indicates a considerable drop in leverage on the Ethereum futures market following this liquidation, signaling potential for improved price growth.
Key Levels for Breakout
A critical level of resistance lies at the 50-week moving average. Historically, this level has been pivotal for Ethereum's strongest rallies in the past. A weekly candle close above the 50-week moving average may confirm a bullish breakout.
Market Overview
Currently, Ethereum is priced at $2,420, with market sentiment remaining cautiously optimistic. The key support level stands at $2,300, while the SOPR indicator for the ETH/BTC pair remains below 1, indicating underperformance for ETH holders compared to BTC. This points to ongoing skepticism regarding the price dynamics of Ethereum.
The liquidation of short positions in Ethereum opens new horizons for growth, but it is essential to monitor key resistance and support levels, as well as the ETH to BTC ratio.
