Ethereum Price Surges 18.6% on $2.9B Short Squeeze
Ethereum price exploded by 18.6% as $2.9 billion of crypto shorts got liquidated, sending the ETH-USD price soaring to $2,277.
The catalyst for this move was a combination of factors, including the Treasury's announcement that it will increase liquidity support buyback operations and the White House's call on Congress to pass a fair version of the CLARITY Act. Additionally, the SEC proposed a framework for regulating crypto assets, which is seen as a positive development for Ethereum.
The short squeeze was triggered by a massive liquidation of short positions, with $2.7 billion to $2.984 billion being closed out over two sessions. This move has been described as one-sided derivatives positioning and low realized volatility.
Ethereum's 20% gain in the past seven days is the largest among the majors, and it has recovered 51% off its June low. However, the asset remains 54% below its record high of $4,951.66 set in August 2025.