ETH Short Squeeze Looms as Bulls Eye $3K

Ethereum's (ETH) September performance is shaping up to be its best in over a decade, with a 7% gain for the month so far. If ETH can maintain this pace, it would mark only the fourth positive September in the past ten years.

But despite this bullish trend, Ethereum's short positions have surged by an astonishing 13,000% in just two weeks, rising from around 771 ETH to over 101,000 ETH. This extreme buildup of bearish bets could quickly turn into fuel for a sharp short squeeze if ETH continues to rise.

The large supply wall between $2,722 and $2,822 is putting pressure on ETH, with more than 13.3 million ETH having changed hands in this range. Additionally, Ethereum declined by about 1.5% this week after breaking above $2,800 last week, indicating intensified selling pressure.

However, what if ETH breaks through this resistance? If bulls step in, the massive buildup of shorts could turn into a perfect bear trap, forcing short sellers to cover and adding more buying pressure that could potentially push Ethereum towards $3,000.