Ether is punishing shorts already, but another 10% ETH price upside will liquidate $1 billion, helping cement a $4,000 price.
Why it matters: Ether’s price strength is sparking a historic short squeeze, with the potential to drive ETH to new highs and reshape the crypto market landscape.
The details:
- ETH/USD is expected to hit $4,000 “soon” according to trading resource The Kobeissi Letter.
- Ether has added $150 billion in market cap since July 1st, days after net short exposure hit record highs.
- ETH/USD has gained 20% over the past week alone, reaching local highs of $3,610 on Bitstamp.
- If Ethereum rises another 10%, another $1 billion of shorts will be liquidated, making a move to $4,000 very likely.
Meanwhile, Bitcoin’s market cap dominance has fallen to 61.4%, its lowest value since March, as capital flows into altcoins like ETH and XRP.
What they’re saying:
- “Ethereum is making HISTORY: We are witnessing one of the LARGEST short squeezes in crypto history,” stated the Kobeissi report.
- “When the market appears overheated or shaky, capital will likely flow back into Bitcoin and stable assets,” noted popular trader Daan Crypto Trades.
- Tom Lee, head of research at Fundstrat, estimates that ether could be worth up to $15,000 in the medium term based on EBITDA-based multiples.
- Lee also cited technical analysis predicting that ether could potentially reach $4,000 before the end of July.
Ethereum is attracting renewed institutional attention as both whale accumulation and high-profile endorsements strengthen the long-term bullish case for the network.
The bottomline: As Ether continues to outperform Bitcoin and punish leveraged shorts, the stage is set for a potential surge to new all-time highs, reshaping the crypto market in the process.
Recent from X
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The result: Charting Crypto, Q3 edition.
Download the report to get a read on how growing stablecoin adoption, L2 usage, and ETH ETF inflows could shape the coming months. ↓ pic.twitter.com/bmvh1vsrsh
— Coinbase 🛡️ (@coinbase) July 18, 2025
Spot btc & eth ETFs have now taken in nearly $25bil this year…
*$25bil*
Almost all of that has been since April 2nd “Liberation Day”.
— Nate Geraci (@NateGeraci) July 20, 2025
IMO, single most remarkable aspect of spot btc & eth inflows is that most financial advisors have zero or minimal exposure…
If you don’t believe me, go ask your local advisor (everybody knows at least one).
Ask them.
Advisors are *huge* factor in ETF flows.
Still early.
— Nate Geraci (@NateGeraci) July 19, 2025