Ethereum (ETH) Bull Run warms up as $ 6 billion shorts versus liquidation

Tl; Dr.

• Ethereum follows the rising global liquidity, with analysts who warn that a breakout could send ETH to $ 7,000.
• More than $ 6 billion in shorts risking liquidation at $ 4,900, so that the chances of a sharp squeeze.
• Bitmine Treasury and ETF Inflow Boost -Question, with $ 2.8 billion that introduces spot ETH funds in August.

Liquidity and Macro drivers

Ethereum retains above $ 4,550 as the macro conditions improve and liquidity grows. Analyst Merlijn The trader noted that Ethereum is following global M2 Liquidity, which demonstrates a close relationship between monetary offer and price action.

“The $ ETH accumulation phase is history. Bull Run phase is active,” he said.

His graph showed Ethereum in step with liquidity levels since mid -2025. He warned,

“Ignore this signal and you buy ETH for $ 7k instead of $ 4.4k.”

Ethereum follows global liquidity

The $ ETH Accumulation phase is history.
Bull Run phase is active.

Liquidity curls higher and Ethereum follows.
This is not “hopium”. This is macro.

Ignore this signal and you buy ETH for $ 7k instead of $ 4.4k. pic.twitter.com/5u9qnjgpjo

– Merlin the Trader (@Merlijntrader) August 26, 2025

Leverage is another factor to look at. Analyst stretches Schermer said More than $ 6 billion in short positions from Ethereum can be forced to close if the price $ 4,900 reaches. “Solid short squeeze will be coming soon,” they wrote.

Forced liquidations occur when markets are moving against traders who hold leverage with short bets. Covering those positions can speed up the purchasing pressure, especially near large resistance zones. Ethereum has risen by 4% in the past day and almost 9% weekly, so that such levels are brought within reach.

Market structure and technical level

Analyst Daan Crypto Trades emphasized that Ethereum briefly released his all time before he withdrew. He pointed To inefficiencies left by the “Powell Candle” and said that the four -hour trend remains strong, with ETH doubled since July without reteste lower series.

“The 4h 200ma/EMA quickly catches up and corresponds to the reach of the reach of this area,” he explained.

He added that a persistent movement above $ 5,000 would probably confirm a new phase of price discovery, while the Bullish structure remains unless Ethereum drops below $ 4,000. In a later update, he emphasized that $ 4,900 is the most important resistance and $ 4,000 – $ 4,100 is the most important support area.

$ ETH Has retained his diagonal support because it has chopped in this price area.

All in all, the most important levels to view are the 2021 of all time high at around $ 4.9k and the local support at around $ 4k $ 4.1k.

Everything in between will probably just be a bad … pic.twitter.com/c7ms8wulir

– Daan Crypto Trades (@DaanCrypto) August 27, 2025

Institutional buy and ETF streams

Institutional question is to add Momentum. When Cryptopotato Reported, Bitmine has collected 1.7 million ETH in just over two months worth $ 7.9 billion. This represents 1.4% of the total Ethereum offer and surpasses the pace of Bitcoin accumulation by company treasures.

Spot Ethereum ETFs in the United States also attract strong inflow. More than $ 2.8 billion entered ETH spot funds in August, with the inflow again this week. Last week, trade volumes for ether treasuries caught up with those for Bitcoin treasure boxes, showing renewed institutional focus on Ethereum.