Ethereum Soars 6% as Bitcoin-Driven Short Squeeze Wipes Out $700M

Ethereum prices surged 6% on September 21, hitting $2,719 after Bitcoin's sudden jump above $85,000 ignited a massive short squeeze that wiped out over $700 million in crypto liquidations. The move saw ETH break through the Fibonacci resistance level at $2,672, a barrier that had capped rallies for months.

According to CoinGlass data, nearly 96% of the roughly $313 million in crypto positions liquidated during the peak were short bets. This was part of a broader $470 million liquidation event across crypto markets, with Ethereum-specific shorts being among those exposed.

The rally saw US spot ETH exchange-traded funds record net inflows of $143.8 million around September 18, adding to the buying pressure that helped push prices higher. With Ethereum's market capitalization reaching approximately $330 billion during the session, traders are now eyeing the potential for further gains.