Ethereum Rockets Past $4,000, Wiping Out Over $200 Million in Shorts

Ethereum experienced a significant price surge, breaking past the $4,000 mark and triggering substantial liquidations of short positions. This rapid ascent saw over $200 million in leveraged bets against Ethereum being forcibly closed within days, with a notable $110 million occurring in a single hour. The rally, which pushed Ethereum to highs around $4,268, is attributed to strong inflows into spot Ethereum ETFs and increased whale accumulation, signaling renewed confidence in the cryptocurrency's long-term potential.

Key Takeaways

• Ethereum surged past $4,000, reaching highs near $4,268.

• Over $200 million in Ethereum short positions were liquidated.

• Spot Ethereum ETF inflows reached $461 million in one session.

• Eric Trump commented positively on the short liquidations.

Market Reaction and Short Squeeze

The dramatic price increase led to a significant short squeeze, forcing traders who had bet against Ethereum to close their positions. This resulted in over $110 million in short liquidations within a single hour on August 10, 2025. Over the preceding week, cumulative short liquidations surpassed $355 million. This aggressive market reaction underscores the strong bullish momentum driving ETH, with analysts noting parallels to past major liquidation events that preceded new bullish cycles.

Driving Factors Behind the Surge

Several factors contributed to Ethereum's impressive performance. A major catalyst was the substantial inflow of $461 million into spot Ethereum Exchange Traded Funds (ETFs) in a single trading session. This, combined with increased activity from large holders, known as whales, who were seen accumulating ETH, indicated growing institutional and retail investor confidence. The sustained price action above $4,000 is viewed as a positive sign for Ethereum's future prospects.

Public Commentary and Future Outlook

The market's reaction was also noted by public figures, including Eric Trump, who expressed his approval of the short liquidations, stating, "It puts a smile on my face to see ETH shorts get smoked today. Stop betting against BTC and ETH – you will be run over." While the current trend is strongly bullish, analysts caution that the market remains susceptible to volatility and broader macroeconomic influences, and short-term corrections are possible. However, the alignment of on-chain metrics and market sentiment suggests continued upward momentum for Ethereum.

Sources

• Ethereum Surges Past $4,000 Triggering $110M Short Liquidations in One Hour, AInvest.

• Ethereum Explodes to $4.2K, $200 Million Liquidated, Trump Rejoices, CryptoPotato.