Key takeaways

1. Ether rallied above $4,000, touching $4,060 before easing to about $4,015 at the time of writing.
   
2. Roughly $105 million in ETH short positions were liquidated, about 53% of the total $199.61 million in crypto shorts.
   
3. Traders flagged $4,100 as the next major resistance and a trigger for a potential short squeeze toward $4,400 to $4,500.
   
4. Sentiment improved on rising institutional interest and several days of net inflows into spot Ether ETFs, about $537 million over four sessions.
   
5. Bold targets resurfaced, including calls for $10,000 and a cycle top as high as $16,000.
   

Ether rally forces $105M in shorts to close

Ether extended its rebound on Friday, breaking above the closely watched $4,000 threshold for the first time in eight months and triggering a wave of short liquidations across the market. The move sent ETH to an intraday high near $4,060, a gain of about 4.6% in twenty four hours, before price cooled to around $4,015. Momentum accelerated as over leveraged positions were forced to close, adding fuel to the advance.

Liquidations were heaviest in Ether. About $105 million in ETH shorts were wiped out, which accounted for a little more than half of the roughly $199.61 million in short positions liquidated across all crypto assets during the session. That imbalance underscored how positioning had leaned against ETH into the move and how quickly sentiment can flip once price clears a major level.

The rally also drew attention outside trader circles. Eric Trump posted that it made him smile to see ETH shorts get smoked and warned market participants to stop betting against Bitcoin and Ether. The comment echoed a broader tone shift as crypto markets continue to rebuild momentum on improving policy clarity and mainstream participation.

Traders watch $4,100 for potential short squeeze

Market technicians focused on a clear roadmap for the next phase. Independent trader Ash Crypto called $4,100 a major resistance zone. A decisive break above that area could force additional covering and trigger a short squeeze that may send ETH toward $4,400 to $4,500 in a short window. Until that break occurs, the level remains a battleground where bears try to slow the advance and bulls look for confirmation.

Beyond the immediate technical picture, sentiment has been buoyed by net inflows into spot Ether exchange traded funds. Over the last four trading days, those vehicles attracted about $537 million, a meaningful vote of confidence from investors who prefer familiar brokerage rails. That steady demand provides a counterweight to profit taking and can help stabilize price action after sharp moves.

Well known voices in the space leaned into the constructive outlook. Trader Ted said he had never been this bullish, citing growing institutional interest and stronger demand for Ether through ETFs. The break above $4,000 also revived headline grabbing targets. Trader Moustache reiterated a view that ETH can ultimately reach five figures. Fundstrat’s Tom Lee compared the current phase to Bitcoin’s breakout cycle in 2017 and floated a case for a peak that could extend to $16,000.

These projections are ambitious and depend on continued follow through from buyers. The immediate test sits at $4,100. A clean move through that level, ideally with rising spot volume and continued ETF inflows, would validate the squeeze case and put the $4,400 to $4,500 zone into view. Failure to reclaim and hold above $4,100 would invite a pause while traders reassess positioning, funding rates, and the durability of demand.

For now, the market has a clear checklist. Watch how ETH behaves near $4,100, monitor liquidation profiles for signs of stress, and track ETF flows to gauge the strength of institutional interest. If those inputs remain supportive, the path of least resistance points higher. If they weaken, bulls may need to consolidate gains before the next attempt. Either way, Friday’s session reminded the market that leaning too hard against Ether carries real risk when momentum shifts.