Ethereum Price Risks $2K Retest as Short Liquidation Fuel Dries Up The recent surge in Ethereum's price has been nothing short of remarkable, with the native token climbing over 30% from its August lows to briefly touch $2,500.
However, this rally is now facing significant technical resistance, raising concerns that a short term correction may be on the horizon. Short liquidation has undoubtedly contributed to Ethereum's vertical rally.
When the price reaches areas with high concentrations of leveraged short positions, these traders are forced to buy back their positions, creating additional buying pressure and pushing prices higher.