Ethereum Breakout Squeezes Shorts and Stirs Up Big Traders

• Over $50 million in shorts were liquidated after Ethereum broke through a dense liquidity zone.
• Large ETH wallets accumulated 1.4M ETH, hinting at growing institutional confidence.

Something interesting has happened in the Ethereum market lately. At the $2,700 price level, long considered a “fortress” by many short traders, ETH suddenly exploded upwards, breaking through the level and immediately triggering a wave of liquidations.

A Price Surge That Flipped the Game in Seconds

According to analyst Amr Taha of CryptoQuant, on Binance, over $50 million in short positions were wiped out in an instant. Imagine if you had just placed a short position at $2,690 with a confident smile, then… BAM! ETH broke through $2,700, and the screen went red.

This movement is not just about the price going up. When ETH hit $2,700, the liquidation delta chart showed a sharp spike. It turns out that this point is not just any resistance, the heatmap shows the area as a zone of dense liquidity, a place where many traders gather and an easy target for a short squeeze.

Source: CryptoQuant

Ethereum Flows, Whale Moves, and a Shift in Market Sentiment

Well, after the breakout moment, more than 144,000 ETH immediately flowed into the derivatives exchange. This kind of movement usually indicates one thing: people are starting to set up new strategies, most likely short. Logically, many suspect that the previous spike will soon be corrected.

On the other hand, according to data as of May 20, 2025, large wallets holding between 10,000 and 100,000 ETH have actually increased their stocks. No half measures, more than 1.4 million ETH have been stored since mid-April to mid-May. It’s like seeing your neighbor buy a truckload of wheat when the price is high. Makes you think, do they know what we don’t?

Furthermore, a report from Dune Analytics stated that the number of daily active Ethereum addresses increased by 12% to around 485,000 on May 23, 2025.

This spike went hand in hand with the inflow of institutional funds into ETH, and interestingly, it also aligned with the increase in the Nasdaq index on the same day. As if there was a common thread between institutional interest in the technology sector and confidence in ETH.

CNF also reported a few days ago that ETH open interest on Binance increased by 41% in the last 30 days. This means that interest in trading ETH futures contracts is getting crazier and this is often an early signal of a big move.

At the same time, the flow of ETH out of the exchange was recorded as quite large, which usually indicates that selling pressure is starting to ease and more holders are choosing long-term savings.

However, all these big maneuvers do not hide the fact that the market can change quickly. At the time of writing this article, ETH has actually fallen 2.65% in the last 24 hours and is trading around $2,485. So yeah, if you had FOMO when ETH hit $2,700, hopefully you didn’t rush to buy at the top.