Ethereum experienced a modest increase of 5% during the latest market rebound, following the liquidation of shorts that were positioned at the bottom. The market showed signs of a possible turnaround, as major shorts were at risk of being forced out. The surge of buy orders from large investors and institutions, along with shifting sentiment, sets the altcoin up for a possible rise toward $4,500. At the time of reporting, Ethereum’s price has liquidated late short orders that were positioned below the $3,600 threshold after experiencing a decline to $3,200.
Notable shorts were building up above the $3,600 mark, while the positions of latecomers were diminishing. Over $10 billion in Ethereum liquidity has been gathered within the $3,600 to $4,500 range, slightly above the existing price levels. Current market patterns suggest that Ethereum’s price could be approaching a crucial breakout zone. If buy orders surpass the $3,600 level, it could trigger a rapid short squeeze, potentially driving the price beyond $4,500. Given the close grouping of liquidity at these levels, short sellers may have limited time to react.
Large investors and organizations are establishing long positions on Ethereum. Whales and institutions took advantage of the dip, gathering assets priced between $3,000 and $3,400. A Bitcoin insider whale, who shorted BTC just before the tariff crash, has now shifted to a long position on Ethereum. A whale has opened a 5x leverage long position on Ethereum, amounting to 40,000 ETH, valued at $138 million. The choice to exit the BTC long position indicates that ETH could see a faster increase than Bitcoin in the current situation. That wasn’t the only acquisition on ETH. Reports says that BlackRock has acquired $35 million in Ethereum. This strengthened the argument for a potential rebound in ETH price as market sentiment shifts. Regarding market sentiment, both retail and institutional investors showed an optimistic perspective on Ethereum.
The knowledgeable investors showed more confidence than the individual traders, with the sentiment measure reflecting 0.23 versus 0.21. The whole crypto market reflected this pattern, showing an increase of 1.35% at the time of reporting. All these observations suggested a possible surge in price that could push it past $4,500. However, the charts indicated that for this price to be reached, short-term levels at $3,460, $3,900, and $4,200 had to be exceeded. As a result, an infringement of these areas could drive the price past $4,500, with all indicators aligning for this outcome.