Recently, Ethereum (ETH) has shown significant growth, reaching its highest value since December 2021. The primary factors behind this rise are short liquidations and strong technical momentum.
Impact of Short Liquidations on ETH Price
The rally began on Friday when ETH broke above $4,000 for the first time in over a year, triggering about $105 million in short liquidations—over half of all closed positions that day. Total ETH liquidations over 24 hours topped $129 million. These forced buybacks fueled the price increase.
“It puts a smile on my face to see ETH shorts get smoked,” wrote Eric Trump on X.
Market Analysis and Forecasts
Crypto trader Miles Deutscher noted that the breakout could initiate a three-phase rotation, including a mini altcoin season. However, other analysts, such as Michaël van de Poppe, cautioned about the risks of buying ETH at elevated levels.
Data from Santiment shows a sharp rise in bullish chatter among retail traders after the $4,000 break, which may signal potential short-term cooling.
Institutional Interest and Active Traders
Institutional demand is also contributing to the positive sentiment in the market. Since July 10, unknown whales and institutions have accumulated over 1.03 million ETH worth approximately $4.17 billion. Founders of prominent projects, like Arthur Hayes, are also re-entering the market, buying back ETH after recent sales.
Technical models show ETH holding support between $4,155 and $4,160, while $4,100 is identified as key resistance.
Ethereum (ETH) continues to draw attention from both retail traders and large institutional players. Optimistic market sentiments may imply potential growth, although analysts are cautious with their forecasts.
