If Ethereum can break through the $3200 level, the subsequent developments will be interesting—major mainstream exchanges' accumulated short positions will be liquidated at a scale of 9.07 billion.

From a trading perspective, this is a positive signal. The reason is straightforward: when the price breaks through this level, a large number of short positions will be forcibly liquidated, and buying pressure will rapidly gather in the market, further accelerating the upward trend. In this scenario, short squeeze phenomena are almost unavoidable, creating a self-reinforcing upward cycle—liquidations trigger buying, buying pushes prices higher, and rising prices trigger more liquidations.

For traders focusing on Ethereum, the $3200 level is indeed a critical support and breakout point worth paying attention to. Once a valid breakout occurs, a rather intense market reaction may be observed in the short term.