Ethereum’s $500M Short Squeeze Ignites Bull Run – Will ETH Shatter Resistance?

Ethereum just liquidated half a billion in bearish bets – and the bulls are charging. With shorts getting wrecked, ETH's momentum looks unstoppable. But can it sustain the rally?

The setup: A brutal squeeze vaporized leveraged positions, leaving traders scrambling. Now, the question isn't whether ETH will move – it's where.

Wall Street's watching through spreadsheets, muttering about 'irrational exuberance' while secretly FOMO-ing. Typical.

Next stop? Either a breakout to new highs... or a painful lesson in crypto volatility. Place your bets.

What would be the first sign of an Ethereum breakout?

Source: CryptoQuant Insights

In a post on CryptoQuant Insights, user İbrahim Cosar observed that a decisive rally WOULD first need to move past the 50-period Moving Average on the weekly timeframe.

The November 2024 and October 2023 rallies came after the ETH price breached this moving average.

Source: ETH/USDT on TradingView

The weekly price action showed ETH was coiled below the 50-week Moving Average, unable to climb above this resistance.

A weekly session close would highlight the strong chance of a bullish trend for Ethereum.

Source: Glassnode

The seller exhaustion constant is the product of the percentage supply in profit and the 30-day price volatility. The combination of low percentage supply in profit (high losses) and low volatility would imply a low-risk bottom had formed.

The seller exhaustion constant has fallen below late-2024 levels, matching the January 2024 low. 

This suggests Ethereum may have formed a high-probability bottom, despite trading above $2.4k within a range.

Source: Glassnode

The ETH/BTC SOPR provided insight into the relative profitability of coins spent on both networks.

Consistent values below 1 meant investors realized heavier losses or fewer profits on their spent ETH than their equivalents on BTC.

It implied ETH weakness. The ETH/BTC saw a brief resurgence in April, but the SOPR showed that ETH continued to remain weak relative to BTC.