Ethereum Skyrockets on Bitcoin-Triggered Short Squeeze

Ethereum's price surged by 6% on September 21 to reach $2,719 after Bitcoin broke through the $85,000 level. The move caught many off guard and triggered one of the most violent short squeezes in crypto history, resulting in over $700 million in liquidations.

The Ethereum shorts were already vulnerable going into the day, with around $313 million in positions being liquidated within a single hour at the peak of the rally. This accounted for 96% of all crypto liquidations during that time.

Furthermore, Ethereum-specific short liquidations had been building up before September 21, with approximately $85 million in ETH shorts being wiped out on September 18 as part of a broader $470 million liquidation event across crypto markets. The remaining short interest was left exposed when Bitcoin punched through the $85,000 level.

The influx of net inflows into US spot ETH exchange-traded funds (ETFs) also contributed to Ethereum's market capitalization reaching approximately $330 billion during the session, marking multi-month highs not seen since January 2026. The key level to watch now is the $2,672 Fibonacci resistance level that Ethereum broke through on September 21.