Ethereum Nears ATH — $1.23B Short Liquidation Risk

I notice Ethereum is only about 5.14% away from its all-time high, and I consider that proximity meaningful for traders monitoring momentum and derivatives risk. I believe that if ETH reaches its ATH, it would put roughly 1.23 billion of short positions at risk of liquidation, which could produce outsized volatility in crypto markets.

Because of the concentrated short exposure, I expect a retest or breakout to the ATH could trigger short-covering and a potential short squeeze, affecting both spot and leveraged ETH markets. I’m paying close attention to on-chain flows, open interest, and funding rates as indicators that would confirm whether a sustained move toward the ATH is underway.