Ethereum Shorts Are Getting Obliterated: Is ETH Primed to Smash Its All-Time High?

Ethereum's bears are getting steamrolled—liquidations pile up as ETH flexes its bullish momentum. Could this be the run-up to a historic breakout?

The squeeze is on. Short sellers are scrambling as Ethereum's price action turns viciously one-sided. With cascading liquidations fueling the fire, ETH isn't just rallying—it's hunting stops.

All-time high in sight? Market structure suggests ETH's consolidation phase may be ending with a bang. The charts whisper 'accumulation,' but the order books scream 'FOMO.'

Of course, Wall Street's latecomers will probably credit 'institutional adoption' if ETH peaks—ignoring the fact that crypto's retail degens front-ran them yet again. The cycle continues.

Ethereum Short Liquidations Shift Market Dynamics

CryptoQuant contributor Darkfost notes that the recent uptick coincides with a structural shift in the derivatives market, particularly around short liquidations.

A deeper analysis of exchange flows and taker behavior further supports the case for sustained upward movement, with indicators suggesting that Ethereum may be positioning itself to revisit previous highs.

According to Darkfost, Ethereum’s current rally follows a prolonged five-month correction phase that began in December 2024. During this period, the market experienced a flush of long positions, especially on Binance, contributing to what he describes as a necessary “cleanup” in the derivatives space.

This recalibration helped reset speculative positioning and laid the groundwork for the recovery observed since late April. Now, the pattern has reversed. “Short liquidations are now dominating on Binance,” Darkfost observed, emphasizing how forced exits of bearish positions are reinforcing Ethereum’s upward price momentum.

Liquidation data shows multiple short squeezes in recent weeks, with volumes reaching $32 million and $35 million, respectively. This trend suggests that many traders are positioned counter to the prevailing market movement, adding fuel to the rally as they’re forced to close out positions.

Darkfost also highlighted that, if this pace of short liquidations continues, Ethereum may be poised to test its all-time high. He added that ongoing inflows into spot Ethereum ETFs and increasing adoption by institutions viewing ETH as a long-term asset could further support this potential breakout.

Taker Volume on Binance Hints at Bullish Continuation

In a separate post, CryptoQuant analyst Crazzyblockk pointed to taker-side activity on Binance as another critical signal. The ETH Taker Buy/Sell Ratio (7-day moving average) recently crossed the 1.00 threshold, signaling stronger buy-side pressure from market participants.

This shift was accompanied by a spike in price volatility, which reached 261.5, mirroring Ethereum’s latest price surge beyond $3,434.

Crazzyblockk noted that this pattern, rising buy-side taker volume aligned with surging volatility, has historically preceded extended price rallies. The divergence between taker long and short volumes further underlines dominant bullish sentiment.

The analyst emphasized that tracking taker momentum on Binance may offer early signals for future market direction, as the ethereum price appears highly responsive to activity on the platform.

Featured image created with DALL-E, Chart from TradingView