$105M in Ether Shorts Liquidated as Eric Trump Warns Bears: ETH Surges Past $4,000
Ethereum’s recent rally has sent shockwaves across the crypto market, culminating in a massive $105 million wipeout of Ether short positions as the world’s second-largest cryptocurrency surged past $4,000 for the first time in eight months. This dramatic upward momentum, fueled by institutional inflows and growing optimism on Ethereum ETFs, triggered a classic “short squeeze” scenario forcing bearish traders to liquidate bets and intensifying ETH’s gains.
Eric Trump Taunts Bears as Ether Leads Rally
Adding a political twist to the market action, Eric Trump, son of U.S. President Donald Trump, issued a bold warning to his 5.8 million followers on X (formerly Twitter):
“It puts a smile on my face to see ETH shorts get smoked today. Stop betting against BTC and ETH you will be run over.”
His comments came as Ether’s price exploded past $4,060 a 4.6% jump over 24 hours before settling near $4,015 later in the day. Trump’s public jab followed the liquidation of about 53% of all crypto short positions that day, with Ether’s surge contributing $105 million to the $199 million in shorts wiped across the market.
Why the ETH Rally Sparked a Short Squeeze
A short squeeze occurs when rapidly rising prices force short sellers to buy back assets to cover their positions, which in turn drives prices even higher. Crypto trader Ash Crypto emphasized $4,100 as a major resistance point; if ETH convincingly breaks through this level, analysts project it could quickly rocket to $4,400 or even $4,500 as more shorts are liquidated.
Several market indicators support this bullish outlook:
- Record Institutional Inflows: Over the past four trading days alone, spot Ethereum ETFs attracted approximately $537 million in net inflows, reinforcing confidence among both institutional and retail investors.
- ETF and Corporate Treasury Demand: Heavy buying by U.S. spot ETFs and public companies stocking up on Ethereum has reduced exchange supply, making it easier for bulls to overpower sellers and sustain price rallies.
- Technical Signals: With a hidden “short gamma” signal in the ETH options market between $4,000 and $4,400, dealers may be forced to buy more ETH to hedge positions as prices rise, intensifying upward momentum toward the $4,400 mark.
- Broader Crypto Optimism: Other tokens like Ripple and Chainlink have also joined the rally, confirming the return of altcoin bullishness and highlighting Ethereum’s leadership in the current run.
Analyst Predictions for Ether’s Next Move
The crypto community is buzzing with bold price targets. Popular analyst Moustache sees the potential for ETH to reach $10,000 in the current cycle, while Fundstrat co-founder Tom Lee believes Ether may be experiencing its “Bitcoin 2017 moment,” with upside possible to $16,000. Crypto trader Ted added, “It’s never been this bullish in my opinion,” citing rising institutional adoption and ETF inflows.
What’s Driving the Renewed Ether Optimism?
- ETF Flows and Regulatory Clarity: The launch and massive uptake of spot Ethereum ETFs have sparked heightened demand, with over $9 billion in cumulative inflows since May.
- Institutional Adoption: Corporate treasuries now collectively hold more than $11.7 billion in ETH, highlighting a major shift toward Ethereum as a mainstream digital asset.
- Technological and Ecosystem Growth: Innovations in DeFi, layer-2 solutions, and national-level blockchain projects are expanding Ethereum’s real-world utility.
Key Takeaways for Traders and Investors
- ETH traders should watch the $4,100 resistance breaking this level could trigger another surge and increase short-term upside volatility.
- Continued ETF inflows and institutional activity point to sustained interest in Ethereum, though short-term pullbacks are possible as bulls and bears battle for control.
- High-profile commentary, such as from Eric Trump, can fuel sentiment and accelerate market moves, underlining the growing role of social psychology in cryptocurrency trading.
Ethereum’s explosive move above $4,000 has not only tripped up short sellers but signaled a broader shift toward institutional validation and mainstream crypto adoption. As the market eyes the critical $4,100 level, all eyes are on whether the next leg higher will “smoke” even more bears on the road to new all-time highs.
