Ethereum’s Historic Short Squeeze: A Path to $4,000?
Ethereum (ETH) is undergoing one of the most significant short squeezes in cryptocurrency history, according to market analysts. The Kobeissi Letter predicts ETH could reach $4,000 soon, driven by potential liquidations of $1 billion in short positions with just a 10% price increase. This forecast is supported by ETH’s 20% surge over the past week and a $150 billion rise in market capitalization since July 1.
Understanding the Short Squeeze
Highly leveraged short positions are amplifying upward pressure on ETH’s price. Cointelegraph Markets Pro and TradingView data indicate ETH/USD is approaching its year-to-date peak, marking a 150% recovery from its 2025 low.
Bitcoin’s Market Dominance Declines
As Ethereum gains momentum, Bitcoin’s market dominance has slipped to 61.4%, its lowest level since March. This trend reflects growing investor interest in altcoins like ETH and XRP for their potential rapid returns.
Expert Insights
“Ethereum’s current rally is exceptional,” said a crypto market analyst. “Record short positions combined with rising demand create ideal conditions for further price increases.”
Looking Ahead
The ongoing short squeeze may propel ETH’s price higher, but the inherent volatility of cryptocurrencies requires careful consideration and research.
