Ethereum's price increase could trigger liquidations worth millions if it crosses the $4,000 level soon.
Many traders are closely monitoring Ethereum's movements as its price gains traction in a volatile space.
Bitcoin’s struggles may shift investor focus to Ethereum, making it a key player in the current crypto market.
The token is moving closer to $4,000, a purchase point that could lead to sales worth $835M. The token's revenue gains come as other digital assets struggle to maintain their upward progress in the current economy. Its performance has drawn increased attention from fund managers who are seeking opportunities outside Bitcoin.
Ethereum’s Surge Brings Short Positions into Focus
Recent research shows that short positions are under increasing pressure, with risk rising rapidly between $3,500 and $4,000. At its current price of $3,592, the coin is nearing this crucial level where a large number of shorts could be liquidated. If the price reaches $4,000, it could trigger a worldwide wave of diversification, leading to further price increases.
Source: X(twitter)
This activity has been observed across several major exchanges, including Binance, OKX, and Bybit, which are key hubs for trading. With so much leverage tied to these price levels, Ethereum’s movement toward $4,000 could create volatility and an opportunity for traders. Investors are closely watching these developments as the potential for drastic market shifts grows.
Ethereum’s rise reflects broader market trends, with some traders looking for alternatives while Bitcoin remains unable to break its key levels. This shift in attention could increase liquidity for Ethereum, making it more attractive in the current market environment.
Bitcoin’s Struggles May Push More Pace to Ethereum
BTC recent performance has been flat as it struggles to surpass its psychological barrier of $100,000. This lack of movement has diverted investor interest toward ETH, which has shown consistent upward momentum. Traders are taking advantage of this trend to position themselves in the token as it approaches higher technical levels.
https://twitter.com/Ashcryptoreal/status/1861890149010862519
The recent increase in risk appetite among investors has also benefited Ethereum, especially as market sentiment favors assets with potential for strong gains. Many believe Ethereum could become the preferred choice for investors seeking a viable alternative in their portfolios.
These developments are further supported by Ethereum’s growing economic fundamentals, which indicate a strong foundation for future growth.
Could a Short Deal Be on the Horizon?
If Ethereum’s cost reaches $4K, traders who bet against it could face losses, forcing them to close positions quickly. This action could create a short squeeze, a situation that pushes costs higher as short traders buy back the asset to cover their losses.
Prominent analyst Ash Crypto highlighted this possibility, stating that $835 million in shorts could be at risk. This has led to increased anticipation among traders, who are keeping a close watch on the coin's price action.
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