Amr Taha
Ethereum Short Squeeze: Over $160M Liquidated on Binance After Breakout Above $3,700
The $160M Short Liquidation Event on Binance: * Ethereum's recent rally past $3,700 sparked a cascading liquidation event, wiping out more than $160 million in short positions on Binance. * This comes just days after a prior $195 million liquidation event near the $3,500 level. * The surge above $3,700 triggered a wave of aggressive short covering, as traders who bet on continued downside were forced to buy back their positions. Whales deposits BTC and withdraws stablecoins: A divergence. Whale wallets monitored by the Whales Screener reveal a contrasting trend. Whales have deposited more than $300 million in Bitcoin to centralized exchanges, while withdrawing over $300 million in stablecoins. Conclusion: Is a Correction Coming? While recent price action in Ethereum as been fueled by short squeezes , but such rapid moves often lead to profit-taking as traders lock in gains. Key factors suggest a potential wave of selling pressure ahead: 1- Overextended Leverage Clean-Up – After a liquidation cascade, the market typically sees reduced open interest, meaning fewer speculative positions support further upside. 2- Whale Exchange Deposits – The increase in Bitcoin deposits by large holders (whales) indicates preparation for selling, especially if BTC struggles to break key resistance levels. 3- Stablecoin Outflows – With over $300M withdrawn from exchanges, buying power has weakened, making it harder to sustain a rally without fresh capital inflows.