Ether Surge Sparks $105M Short Liquidations

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Ether, the world’s second-largest cryptocurrency, has recorded its strongest rally in months, triggering more than $105 million in short position liquidations and drawing public attention from Eric Trump. The asset’s rise past $4,000 for the first time since December 2024 has intensified speculation among traders that further gains could be on the horizon.

On Friday, Ether’s price reached $4,060 before settling at around $4,015, marking a 4.6% increase in 24 hours, according to market data from Nansen. This surge placed Ether at the centre of the day’s most significant trading events, with cryptocurrency analytics platform CoinGlass reporting that approximately 53% of all short liquidations across the digital asset market were tied to Ether.

Eric Trump, son of US President Donald Trump, made headlines in financial circles after commenting on the rally on the social media platform X. “It puts a smile on my face to see ETH shorts get smoked today. Stop betting against BTC and ETH, you will be run over,” he wrote to his 5.8 million followers.

His comments came as Ether outperformed many other major cryptocurrencies, surpassing $4,000 for the first time since December 2024 and exceeding Bitcoin’s percentage gains over the same period.

Analysts have identified $4,100 as a critical resistance level. Crypto trader Ash Crypto suggested that a decisive break above this point could trigger a short squeeze, potentially pushing Ether’s price between $4,400 and $4,500 within hours. “If ETH breaks $4,100, it could trigger a short squeeze which will send ETH to $4,400–$4,500 in just a few hours,” he said.

Other traders have also voiced bullish sentiment. Prominent crypto commentator Ted described the market outlook as “never been this bullish”, pointing to growing institutional demand and interest in Ether-based exchange-traded funds (ETFs).

Institutional involvement in Ether has been steadily increasing, with London’s financial sector seeing a marked rise in activity from investment firms exploring exposure to Ethereum through regulated investment products. The UK’s Financial Conduct Authority has maintained a cautious stance on retail crypto promotions but has allowed certain institutional products to operate under strict compliance rules.

Market watchers say the surge in Ether prices could renew interest among UK-based professional traders and asset managers, particularly with the prospect of Ether ETFs gaining traction internationally. While no UK-specific Ether ETF has yet launched, the growing pressure from investors could influence future developments.

Several traders have made high-end price forecasts for Ether following its recent rally. Crypto trader Moustache suggested the token could rise above $10,000, while Tom Lee, co-founder of research firm Fundstrat, described Ether as having its “Bitcoin 2017 moment” and predicted it could reach as high as $16,000.

While such predictions are speculative, the current market movement has reinforced optimism among those expecting Ether to play a major role in the next cryptocurrency bull cycle.

Despite the upbeat sentiment, analysts caution that digital asset prices remain highly volatile. A sudden reversal could occur if macroeconomic conditions shift or if regulatory developments impact investor confidence. In the UK, the government has indicated its intent to tighten oversight of crypto promotions and strengthen anti-money laundering measures, which could affect market accessibility for retail traders.

The short-term focus, however, remains on whether Ether can hold above $4,000 and challenge the $4,100 resistance. Traders will also be monitoring Bitcoin’s performance, as historically, the two assets have shown correlated price movements in major rallies.

Some UK-based traders have reported renewed activity in online trading forums and professional networks following Ether’s surge. “The move above $4,000 is psychologically significant,” one London-based crypto analyst said. “If institutional flows continue, we could see the UK market more engaged in Ether trading than at any point since the last peak.”

The coming days may determine whether this rally becomes a sustained upward trend or a temporary spike. For now, market participants are watching key resistance levels and liquidation data closely, as both have the potential to shape the next phase of Ether’s price action.