Ethereum prices may rise during mass liquidation of short positions — CoinDesk

Ethereum's price has surged over 25% in the past week, approaching $3,755, as CoinDesk analysts attribute the rally to high short interest and potential liquidations. A Crypto Banter analyst notes that breaching the psychological $4,000 level could trigger massive short covering, further accelerating upward momentum.

CoinGlass data shows $331 million in short positions facing potential liquidation at time of publication. Such liquidations could fuel faster price appreciation as sellers are forced to buy back Ethereum to cover positions, creating additional upward pressure.

Market dynamics also show capital rotating toward Ethereum. Analyst Pentoshi observes growing institutional interest, with new firms accumulating ETH as a reserve asset, some targeting up to 1% of total supply. This accumulation creates sustained buying pressure that supports prices from below.