Ethereum Bullish Fractal: Poised for $2,800 Breakout After Massive $112M Short Squeeze
Ethereum (ETH) surged nearly 7% in the last 24 hours, breaking above key resistance levels and sparking renewed optimism for a rally toward $2,800. The move comes after a massive $112 million short squeeze, forcing bearish traders to cover their positions and driving price momentum higher.
Ethereum Short Squeeze Triggers Breakout Momentum
The recent rally was triggered by a large-scale liquidation of short positions across major exchanges, particularly Binance, where over $80 million in short positions were wiped out. In total, more than $112 million in ETH shorts were liquidated within 24 hours, setting the stage for a rapid price increase.
This aggressive move squeezed out over-leveraged traders and created bullish pressure that pushed Ethereum’s price above $2,400 for the first time in weeks.
Bullish Fractal Hints at $2,800 Ethereum Target
Technical analysts point to a bullish fractal pattern forming on Ethereum’s daily chart. This fractal mirrors previous breakout setups, suggesting that ETH could soon test resistance around $2,800—a level last seen earlier this year.
Key resistance levels to watch:
$2,500 – Immediate psychological resistance
$2,600–$2,700 – Strong historical supply zone
$2,800 – Target zone for the current fractal breakout
If Ethereum maintains momentum and breaks above $2,500, the next logical move would be a test of the $2,600–$2,700 resistance range, before attempting a breakout to $2,800.
Market Outlook: Can Ethereum Sustain the Rally?
While Ethereum’s bullish move is encouraging, analysts caution that profit-taking, macroeconomic uncertainty, and potential whale activity could slow the momentum. Traders are advised to monitor on-chain data, exchange inflows, and global financial events for signs of trend continuation or reversal.
Summary
Ethereum price surged ~7% to $2,450 after a $112M short squeeze.
A bullish fractal signals a potential breakout toward $2,800.
Resistance levels at $2,500, $2,600, and $2,700 are crucial for continuation.
Market sentiment remains cautiously optimistic amid increased volatility.