Overview

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If Ethereum continues to decline, it could confirm a bearish outlook, leading to further liquidations. However, with such extreme short positioning, a short squeeze is also a real possibility if Crypto short traders faced $1.12 billion in liquidations as Ethereum’s 25% rally led to $439 million in losses. Bitcoin surged to $102,858, triggering $307 million in Bitcoin (BTC) and Ethereum (ETH) short traders took a major hit on Thursday, sparking nearly $1 billion in crypto liquidations. The short squeeze was fueled by Bitcoin and Ethereum were leading the liquidation with a whopping $550.13 million and $476.06 million. Cardano [ADA] and Ethereum Classic [ETC] took over the next New all-time highs in short liquidationsat least when measured in dollarspoint to overly bearish market sentiment. Ether is setting liquidation records this week as a The current ETH rally led to over $430M in liquidations for the past 24 hours. Ethereum (ETH) showed its ability to rally, adding over 20% in a single day. ETH recovered to Ethereum price dropped below the $3,200 mark, closing at $3,133 on Decem. This marks a significant decline of 9.2% from its weekly high of Ethereum’s rapid increase in value saw $437.49 million in total liquidations, including $136.74 million from long positions, with the remainder coming from short bets. The Ethereum’s recent price rally has led to over $750 million in short liquidations within the past 24 hours, marking the largest single-day total for bearish positions since 2025.

Crypto Carnage: $1.12B Short Liquidations REKT Bearish Outlook? Ethereum Rallies!

The crypto market experienced a wild ride recently, with a staggering $1.12 billion in short liquidations shaking the foundations of a potentially bearish outlook. Was this the end of the downtrend, or just a momentary reprieve?

Ethereum Leads the Charge (and the Losses)

Ethereum (ETH) showed its ability to rally, adding over 20% in a single day and leaving a trail of devastation in its wake. The ETH rally led to over $430M in liquidations for the past 24 hours. Ethereum’s 25% rally specifically led to $439 million in losses for short traders. This surge was a major catalyst for the overall market upheaval, with Ethereum’s rapid increase in value saw $437.49 million in total liquidations, including $136.74 million from long positions, with the remainder coming from short bets. ETH recovered to see massive short positions wiped out, highlighting the risk of betting against the second-largest cryptocurrency.

Indeed, Ethereum short traders took a major hit on Thursday, sparking nearly $1 billion in crypto liquidations. Bitcoin and Ethereum were leading the liquidation with a whopping $550.13 million and $476.06 million. The Ethereum’s recent price rally has led to over $750 million in short liquidations within the past 24 hours, marking the largest single-day total for bearish positions since 2025.

Bitcoin's Role and the Short Squeeze

Bitcoin surged to $102,858, triggering $307 million in Bitcoin (BTC). The short squeeze was fueled by growing buying pressure and a market correction. This, combined with Ethereum's aggressive rally, amplified the pain for short sellers.

Bearish Sentiment Overblown? New All-Time Highs in Liquidations

New all-time highs in short liquidations—at least when measured in dollars—point to overly bearish market sentiment. Ether is setting liquidation records this week as a sign that investors were heavily betting against its rise.

What's Next for Crypto?

The big question remains: is this a turning point, or just a short-term blip? If Ethereum continues to decline, it could confirm a bearish outlook, leading to further liquidations. However, with such extreme short positioning, a short squeeze is also a real possibility. Remember that Ethereum price dropped below the $3,200 mark, closing at $3,133 on December. This marks a significant decline of 9.2% from its weekly high of.

Beyond Bitcoin and Ethereum, Cardano [ADA] and Ethereum Classic [ETC] took over the next levels of liquidation, indicating that the effects were felt throughout the altcoin market.

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