Ethereum short squeeze: $338K liquidated at $4,522 — short-term bullish

I note a $338,000 short on Ethereum was liquidated at $4,522.22, which indicates short-covering and a burst of short-term buying pressure. This kind of liquidation often produces a quick bullish move as traders who were short are forced to exit.

I see this as a constructive microstructure signal but not a standalone reason to assume a sustained rally. Follow-through volume, broader on‑chain metrics, and whether price holds key support levels will determine if the move endures.

I would look to add exposure on disciplined pullbacks or on confirmation of continued momentum rather than chasing an immediate spike; use position sizing and stops to manage the risk.