Ethereum Short Squeeze: $183 Million in Shorts Liquidated as ETH Nears $4,200

Ethereum just had a massive breakout. The price surged over 7% in the past 24 hours to hit a of nearly $4,200 on Saturday.

This powerful move pushed ETH’s market cap back above $500 billion and finally broke the key $4,100 resistance that has capped bullish sentiment since December 2021.

This sudden, violent move upward triggered a massive short squeeze, wiping out bearish traders. In the , over $205 million in leveraged ETH positions were liquidated, with a staggering $183 million of that belonging to short sellers betting on a price drop. This is a clear sign the market was caught completely off guard.

According to on-chain data analysis from , Ethereum whales have accumulated more than 1 million coins, worth $4.16 billion since July 10, 2025, to date. In the past 24 hours, a whale investor accumulated over 10k Ether, worth over $40 million from Galaxy Digital.

The U.S. spot Ether ETFs have recorded a net cash inflow of $326 million during the past week led by BlackRock’s ETHA. Meanwhile, has led corporate investors in implementing Ether treasuries.

And there’s more coming.

The sudden Ether price pump above $4.1k today has triggered a major short squeeze. Moreover, Ether traders who expected a correction similar to the last two years after ETH retested $4k have since turned bullish Ed following a forced liquidation.

Earlier today, a whale ETH trader was liquidated for more than $15 million after the ETH price rallied to $4.2k.

The Ethereum price bullish breakout above $4.1k has also been fueled by a clearer crypto regulatory outlook in major jurisdictions led by the United States. For instance, the recent enactment of the GENIUS Act in the United States has attracted more institutional investors to Ethereum’s stablecoin market.

According to crypto analyst the recent crypto pump that pushed the total market cap above $4 trillion is fueled by the Ether season and not an altseason. Moreover, the ETH/BTC pair has been on the move amid the gradual decline of Bitcoin’s dominance.

Nonetheless, a rising speculation of the 2025 altseason will attract more FOMO (fear of missing out) traders and trigger a major bull rally.

From a technical analysis standpoint, Ether price is now well-positioned to retest its all-time high in the coming weeks. If ETH price is following a similar fractal pattern to the 2017 crypto summer, the next four weeks will be characterized by bullishness.

According to crypto analyst alias Captain Faibik, ETH price has just broken out of a multi-year triangular pattern with a midterm target of new ATH and a macro target of over $12k.

Good news on price, but…