Ethereum Eyes $5,100 Break to Trigger $248M Short Squeeze
Ethereum is trading near $4,718 and is approaching a critical resistance level at $5,100. According to Coinglass data, a move above $5,100 could liquidate roughly 52,430 ETH—valued at about $247.8 million in short positions—potentially creating a cascading short squeeze. Liquidations between $5,000 and $5,120 may generate sudden buy orders, driving prices higher. Over the past week, Ethereum has gained nearly 10%, breaking above previous resistance levels and signaling bullish market sentiment. Traders should monitor liquidation zones and set alerts around the $5,100 mark to capitalize on rapid price swings. Historical short squeezes in crypto markets often result in sharp upward momentum, suggesting that a successful break could push Ethereum toward new highs. Investors are advised to watch trading volume and open interest data to assess the strength of any breakout.
Bullish
The prospect of a $248 million short squeeze if Ethereum breaks above $5,100 suggests strong upward pressure. Forced liquidations between $5,000 and $5,120 could unleash a wave of buy orders, replicating past crypto short squeezes that led to rapid price rallies. In the short term, traders may ride the momentum as stop-loss orders trigger more buys. Over the long term, sustained volume and open interest growth around new support levels could cement a bullish trend for Ethereum.