Will Ethereum Momentum Shift to Bulls as Market Wipes Off $25M in Shorts?

Ethereum shows early signs of recovery as $25 million in shorts get liquidated, signaling bullish momentum may be building.

Ethereum (ETH) is attempting a mild rebound after recent downside pressure, with the price hovering around $2,912.14 at press time, up roughly 1.6% over the past 24 hours. The intraday range between $2,862.84 and $2,973.89 shows buyers repeatedly testing the upper band but still struggling to reclaim the $3,000 psychological level. 

Zooming out, however, the broader picture remains cautious. Ethereum is still down about 5.5% over the past week, 16% in the last 14 days, and more than 30% on the 30-day view. Against this backdrop, the next sections will unpack Ethereum’s key technical levels, trend structure, and potential catalysts that could decide whether this bounce evolves into a more meaningful recovery.

Next Resistance for Ethereum Price

Specifically, on the technical front, Ethereum’s daily chart built around Bollinger Bands shows the token trying to recover from sustained downside pressure. On November 21, price pierced and rode the lower band near $2,629, signaling an oversold phase, before bouncing back inside the bands and toward the midline, which currently sits around $3,129. 

This reversion move suggests sellers are losing some control, but the bands still slope downward, underscoring that the broader trend remains corrective. A clean daily close above the middle band would be an important first step in reducing volatility, shifting momentum back in favor of buyers and opening room toward the upper band near $3,644. That move would require Ethereum to jump about 25% from the current $2,912.

Interestingly, momentum signals from the Stochastic RSI back up this early recovery narrative. After spending time in the oversold zone, the Stoch RSI lines have turned sharply higher, with the blue line now at 86.8 and the signal line following at 60.97, reflecting a strong swing in short-term bullish momentum. However, readings in or near the overbought region also warn that upside could cool if Ethereum fails to clear nearby resistance. 

Ethereum Liquidation Data

Backing up the technical picture, derivatives data show that Ethereum is in the middle of a leverage reset as both bulls and bears are being “rekt” at different time frames. Over the past hour, about $1.80 million in positions were liquidated, almost entirely from longs, with only around $3,000 in shorts closed. 

The 4-hour window tells a similar story, with $3.43 million in total liquidations dominated by roughly $3.36 million in long positions versus just $69,000 in shorts. 

However, when zooming out, the balance shifts. In the last 12 hours, Ethereum has seen $18.93 million in liquidations split between approximately $7.41 million in longs and $11.52 million in shorts, while the 24-hour tally rises to $54.19 million, with $25.64 million wiped from longs and $28.55 million from shorts. Notably, the shorts are currently bearing most losses, signaling a market skewed towards upside.