Ethereum Price Jumps Past $2,700 as Massive Short Squeeze Hits Market
Ethereum's price surged past $2,700 in a massive short squeeze that left many traders reeling. Over the past 24 hours, a staggering $182.87 million in positions were liquidated, with $142.72 million of it coming from short sellers who got caught on the wrong side of the trade.
The move above the resistance zone near $2,100-$2,200 was not just a squeeze, it marked a significant shift in market sentiment. Binance open interest climbed to roughly $6.58 billion, its highest level since January, indicating that new money is entering Ethereum futures.
Tom Lee's firm BitMine reportedly bought $75 million worth of ETH, with Lee predicting that the fourth quarter could bring one of the strongest rallies in years. However, it's essential to note that this is just one investor's opinion and not a guaranteed outcome.
The next real test for Ethereum will be whether it can close above the $2,750-$2,800 zone and turn it into support. If it does, chart structure suggests a possible move into the $3,200-$3,450 range. However, if it fails, a pullback toward $2,350-$2,400 is possible.