Can Ethereum Break Past $3,321 and Liquidate a $3.5M Whale Short?

Will Whale Liquidation Push Ethereum Toward a Parabolic Price Rally?

The price of Ethereum is again grabbing attention. Given that the technical breakout was strong, and all bullish fundamentals are lining up, the major question is-if ETH surpasses $3,321, is it going to trigger a multi-million-dollar whale liquidation? The answer to this question may start an explosive rally toward $4,200, according to top analysts.

Let's take a look at the unfolding Ethereum narrative along with the whale short at risk and the bullish patterns that hint at a new uptrend.

Whale in Trouble: $3.5M Short Position Near Liquidation

A major crypto whale—wallet address 0x2258—recently chose to implement a high-risk short sale of ETH using 18x leverage, betting on a price decrease. But the market went against the whale. With the price of ETH steadily rising now, the position is down more than $3.5 million. 

According to on-chain data shared by Lookonchain, if ETH crosses the price of $3,321.81, the whole short will be liquidated. This could add fuel to the bullish momentum as forced buybacks accelerate price action.

Ethereum Gains 21% Weekly – Powered by ETF Inflows and Market Sentiment

Over the past week, the price has witnessed a growth of over 21%. The most recent resurgence of prices above the significant resistance level at $3,000 has not been seen in several months. The recent surge is not only technically driven but also fundamentally driven. An inflow of institutional capital is going into Spot Ethereum ETFs, and for once on the short-term charts, Ethereum has been in front of Bitcoin. 

Again, as exchange reserves plummet to their lowest in eight years, holders continue their bullish path-the absence of sell-side pressure again makes a bullish case for Ethereum.

Cup and Handle Pattern Points to $4,200 Price Target

According to a crypto analyst, CryptosBatman shared insights about X, highlighting a cup and handle pattern on ETH’s daily chart. This is a classic bullish formation on the price, which has been taking shape since March, with the round bottom touching $1,400 and the recent breakout above the $2,850 neckline.

If this breakout remains, the technical target points toward a move to near $4,200; a whopping 45% move from the neckline price. Reinforcing this pattern are increasing fundamentals, such as declining ETH on exchanges and rising institutional interest.

Can Ethereum Hit a New All-Time High in Q3?

With the price momentum building and with liquidation of short positions building up, Ethereum is sitting at the cusp of retesting or perhaps surging past its high of $4,878 set in November 2021. The analysts state that a perfect storm is brewing for a breakout run because of bullish technicals meeting fundamentals. 

If $3,321 could be flipped into a support by ETH, then not only will the whale probably be liquidated, but a short squeeze rally could also start, pressing the price toward $3,500 and beyond $5,000.

Is ETH Ready for Liftoff?

It is not just another pump-and-dump rally: this rally is being propelled on the weight of strong on-chain fundamentals, technical breakouts, and market confidence building up. With a whale short to be liquidated on the brink and bullish patterns aiming for $4,200, it will not take much to set off an explosive rally.

Will the rally proceed to shatter $3,321 and bring in a new bull cycle? All eyes will be on the charts this week.