The recent surge in Ethereum's price to $2800 has been driven by a combination of ETF speculation and technical signals indicating bullish trends. This increase has also caused a short squeeze, resulting in significant liquidations.
ETF Speculation and Technical Indicators
The price jump coincided with reports of a proposed crypto ETF backed by former President Donald Trump. This news catalyst aligned with a golden cross pattern—where the 7-day EMA crossed above the 30-day EMA—and a bullish pennant formation, both historically associated with upward price momentum. Technical indicators confirm the move, with the MACD histogram at +27.62 and the RSI at 65.18, signaling strong bullish momentum without entering overbought territory.
Short Squeeze and Altcoin Rotation
Ethereum not only outperformed Bitcoin (+2.3%) and the broader crypto market (+2.76%), but also triggered a wave of liquidations. Over $16.2 million in ETH short positions were wiped out after breaking the $2800 resistance, fueling a cascade of forced buybacks. Derivatives open interest rose 5.73% in the past 24 hours, while funding rates for perpetuals turned positive—indicating renewed appetite for leveraged long positions. The rally is also supported by a broader sector rotation favoring altcoins.
What’s Next: Key Level and Target
While the Trump-linked ETF still lacks regulatory approval, the technical market structure remains intact. If Ethereum holds above the $2698 level (23.6% Fibonacci retracement), it could pave the way toward a new target of $3350—the 161.8% Fibonacci extension.
Current events highlight the importance of technical analysis and speculative factors in determining Ethereum's price. Investors should closely monitor key levels to understand potential subsequent movements in the market.
