Ethereum on the Edge: $10 Billion in Short Positions Hanging by a Thread

Ethereum [ETH] may be on the verge of a massive breakout, one that could shake the entire market. Bearish momentum is fading, whales are buying, and more than $10 billion in short positions are at risk of being wiped out.

Is a Short Squeeze Coming? If ETH’s price climbs toward $4,359, it could unleash a cascade of liquidations, triggering a textbook short squeeze. In that scenario, short sellers would be forced to rapidly cover their positions, sending Ethereum’s price even higher.

Bearish sentiment still lingers—funding rates have remained negative, meaning traders are actually paying to stay short. Historically, this type of setup often precedes a market reversal.

Whales Are Buying While the Market Hesitates Meanwhile, the biggest players are quietly accumulating. Just yesterday, Bitmine purchased 234,846 ETH worth $963 million, boosting its total holdings to more than $10.8 billion. This move highlights that institutional investors see upside potential despite the cautious mood in retail markets.

Bears Are Weakening, Market Awaits a Breakout At the time of writing, ETH is trading around $4,173, showing a modest recovery from last week’s dip. Technical indicators suggest that a shift in trend could be approaching: RSI is holding at a neutral 45DMI shows weakening bearish momentum, with the –DI line flatteningPrice hovers just below the 20-day and 50-day EMAs, signaling resistance but also a potential breakout zone

The market is tense—bears are losing steam, while bulls prepare for an assault. If a short squeeze ignites, Ethereum could be propelled into a powerful rally.

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