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Ethereum (ETH) closed the week on a strong rally. Rapid liquidation of short positions and bullish sentiment in the options market pushed the price above $3,600 as of Friday.
Ethereum Short Liquidations Push Price Above $3,600: Experts Call It a Structural Transformation
ETH, which has gained over 20 percent on a weekly basis, could test the $4,000 level by the July 25 futures options expiry, according to analysts.
Dr. Sean Dawson, research director at onchain options platform Derive.xyz, described this upward move as a “structural regime shift,” saying, “Investors are aggressively positioning for a rapid rise to $4,000.”
According to Coinglass data, approximately $136 million worth of ETH short positions were liquidated in the last 24 hours, causing an upward price squeeze.
Approximately 25% of ETH options traded on the Derive platform since Wednesday are focused on $3,000-$4,000 call options due July 25. Eight percent of open positions for the same period are positioned at $4,000.
Dawson estimates a 14% probability of ETH closing above $4,000 by the end of July and a 27% probability of it closing above $5,000 by the end of 2025.
Bitcoin is also participating in this rally, but this rally belongs to Ethereum. The technical landscape, options flows, and liquidations signal a structural shift in market positioning.
Regulatory developments in the US also contributed to the overall market rally. The total crypto market capitalization surpassed $4 trillion for the first time.
This development was bolstered by the bipartisan GENIUS Act, which was sent to the president for signature, and the Senate's introduction of the Clarity Act. These regulations are widely seen by investors as paving the way for clearer cryptocurrency regulations in the US.
Wall Street's appetite for crypto funds has also strengthened. BRN senior analyst Valentin Fournier noted that Ethereum led the way. According to the data, there were net inflows of $602 million into Ether spot ETFs and $523 million into Bitcoin ETFs.
Bitcoin Consolidates, New Highs on the Horizon
Bitcoin remained sideways below $120,000 during this period. According to Glassnode data, BTC has reached a point that has historically acted as resistance, rising one standard deviation above its short-term investor cost average.
However, technical analysis suggests that the next resistance level is around $136,000, suggesting that the upside potential may continue.
*This is not investment advice.