Dramatic Loss for ETH Shorts: Over Half a Billion Dollars Vanished in Recent Week
In the dynamic world of cryptocurrencies, Ethereum (ETH) has been making waves, outperforming Bitcoin (BTC) on large time frames, potentially signalling the much-anticipated "flippening" season.
During the same period, Bitcoin (BTC) remained relatively stable, causing Bitcoin (BTC) bears to lose only $112 million. However, the story unfolded quite differently for Ethereum.
Last week, Ethereum experienced massive short liquidations exceeding $250 million within 24 hours around August 13, 2025. This was primarily due to a sharp price rally that pushed ETH above key resistance levels like $4,600.
The cause of these liquidations and the short squeeze was a combination of factors. An 8%+ price surge in a day, following weeks of institutional buying and positive ETF-related news, played a significant role. On-chain data showing net outflows of ETH from centralized exchanges, signalling buy-side confidence, was another factor. Overbought technical indicators and macroeconomic optimism around regulatory clarity and geopolitical developments also contributed. Lastly, large forced liquidations concentrated in short positions as ETH breached resistance and climbed toward $4,600 and beyond.
After the surge and short squeeze, Ethereum's price has remained bullish. Analysts are now eyeing breakout targets ranging from $6,000 to potentially between $8,000 and $15,000 as momentum builds into August 2025. Despite a brief pullback causing some long liquidations, overall market sentiment remains positive with strong inflows into spot Ether ETFs reinforcing the trend.
In the last three sessions, Ethereum (ETH) bears have faced significant losses, exceeding $355 million. Currently, Ethereum's price is attempting to jump above $4,200. However, it's important to note that Ethereum's (ETH) price touched the lowest levels in over five years in April, marking a time of maximum disbelief for the Ethereum (ETH) audience.
The Ethereum (ETH) ecosystem has seen significant growth recently. Fidelity's FETH and BlackRock's ETHA funds are responsible for 82.6% of the massive inflow into Ethereum spot ETFs, which peaked over $23.3 billion, more than doubling in one month. In just three sessions, the Ethereum spot ETFs in the U.S. received a $462 million inflow.
Ethereum (ETH) has also surpassed major rivals on almost all time frames, adding another 8% to its price in the last 24 hours. Interestingly, Ethereum's (ETH) price versus Bitcoin (BTC) collapsed below 0.02, marking the lowest levels in over five years, as reported by U.Today previously in April. One month ago, ETH/BTC was in the red on almost all time frames, according to Millegan's X posts.
However, Ethereum (ETH) ecosystem veteran Brantly Millegan has observed that ETH/BTC is surging on seven out of eight TradingView time periods. On Aug. 1, crypto capitulation erased $326 million of ETH long positions in 24 hours. Despite this, Ethereum (ETH) price increased by 50% in the last 30 days, suggesting a strong recovery.
In summary, Ethereum's bullish trend is driven by a combination of factors, including institutional inflows, ETF adoption optimism, technical breakouts, and macro factors. The current price trend is strongly bullish, with price targets significantly higher than current levels, suggesting sustained upward momentum into mid-2025. This reflects a classic short squeeze driven by fundamental buying pressures and technical breakout confirmation, setting the stage for continued price growth.
Crypto investors are optimistic about Ethereum's (ETH) future, as it has outperformed Bitcoin (BTC) on several time frames, potentially signaling the "flippening" season. Last week, Ethereum experienced a significant short liquidation of over $250 million due to a sharp price rally and a combination of factors such as institutional buying, positive ETF news, net outflows of ETH from centralized exchanges, overbought technical indicators, macroeconomic optimism, and large forced liquidations concentrated in short positions. Currently, Ethereum (ETH) bears have faced significant losses exceeding $355 million in the last three sessions, and analysts anticipate breakout targets for Ethereum ranging from $6,000 to potentially between $8,000 and $15,000. Institutional inflows, ETF adoption optimism, technical breakouts, and macroeconomic factors contribute to Ethereum's strong bullish trend, with the current price trend strongly suggesting sustained upward momentum into mid-2025.
