Ethereum surged by 7% following a record $112 million short squeeze, revealing a bullish fractal pattern that hints at a breakthrough above $2,800. However, Binance traders remain skeptical, increasing their short positions despite the positive momentum.
Ethereum's Rebound Fueled by Short Squeeze
Ethereum is currently trading at $2,418**, marking a **7.3%** gain in 24 hours with a spot trading volume exceeding **$26 billion. These recent upward movements align with a promising fractal pattern, suggesting a continued rise toward $2,800.
After a pause in May's rally, Ethereum's price briefly dipped due to geopolitical tensions. However, the announcement of a ceasefire between Iran and Israel reignited risk appetite among crypto traders, triggering a rebound of over 7% in a single day.
This price pattern closely resembles the Q4 2023 to Q1 2024 period when Ethereum experienced a parabolic rally, followed by a month-long consolidation before breaking through resistance to reach $4,000.
Bullish Fractal Pattern Points to $2,800
To validate this bullish fractal, Ethereum must decisively breach the key resistance level at $2,800**. A clean breakout could pave the way for a further rally beyond **$4,000.
The RSI indicator supports this outlook, mirroring its January 2024 movement before the bullish breakout. Traders should watch for the RSI to climb above 50 to confirm sustained upward momentum.
Despite this promising bullish trend, Binance traders remain cautious. Short positions on Ethereum jumped from 28% to 39% in just 24 hours, potentially dampening short-term rally prospects.
Monitoring trader positions—especially on Binance—will be critical, as a shift in sentiment could accelerate Ethereum's gains if short positions are unwound en masse.
👉 Why Ethereum’s Short Squeeze Could Signal a Major Rally
Key Takeaways
- Ethereum’s price surged 7% after a $112 million short squeeze.
- A bullish fractal pattern suggests a potential rise to $2,800.
- Binance traders increased short positions, indicating skepticism.
- A decisive breakout above $2,800 could target $4,000.
FAQs
What caused Ethereum’s recent price surge?
The rally was driven by a $112 million short squeeze, coupled with renewed risk appetite after geopolitical tensions eased.
How high could Ethereum go?
If the fractal pattern holds, Ethereum could reach $2,800, with a breakout potentially pushing it toward $4,000.
Why are Binance traders skeptical?
Short positions rose from 28% to 39% in 24 hours, reflecting caution despite the bullish setup.
What indicators support further gains?
The RSI mirrors its pre-breakout movement from early 2024, suggesting upward momentum if it stays above 50.