Short sellers betting against Ethereum discovered the painful reality of leveraged positions this week as $105 million in bearish wagers evaporated faster than campaign promises after an election, with Eric Trump—perhaps channeling his family’s penchant for market commentary—publicly celebrating the carnage on X while issuing stark warnings to traders foolish enough to maintain short positions against the world’s second-largest cryptocurrency.
The liquidation bloodbath unfolded as Ethereum surged past $4,000 for the first time since December 2024, triggering what can only be described as a spectacular short squeeze that accounted for approximately 53% of all crypto short losses during the period.
Eric Trump, wielding his 5.8 million follower platform like a digital sledgehammer, warned bear traders they would be “run over” for betting against Bitcoin and Ethereum—advice that proved remarkably prescient as $183.6 million in short positions vaporized within 24 hours.
Eric Trump’s warning to crypto bears proved devastatingly accurate as $183.6 million in short positions evaporated like morning mist.
The underlying catalysis stemmed from President Donald Trump’s executive orders regarding retirement account rules, hinting at increased cryptocurrency inclusion in 401(k) plans—a development that sent institutional investors and ETFs scrambling to accumulate positions while clearing exchange supply with the efficiency of locusts in a wheat field.
Ethereum’s 4.6% surge to approximately $4,015 left analysts eyeing the critical $4,100 resistance level, with some suggesting breaches could propel prices toward $4,400-$4,500 within hours.
The broader market impact proved equally dramatic, with total futures liquidations reaching nearly $370 million within 24 hours, Ethereum shorts constituting over half the carnage.
Bitcoin’s concurrent surge past $117,000 reinforced the bullish momentum, creating a self-reinforcing cycle that obliterated bearish positions with mechanical precision.
Market observers noted the irony of Eric Trump’s celebratory commentary coinciding with his longstanding bullish outlook on Ethereum, having previously encouraged accumulation during price dips.
The combination of regulatory optimism surrounding U.S. stablecoin legislation, institutional buying pressure, and technical breakouts above key resistance levels created what some analysts characterized as a “perfect storm” for short position annihilation—leaving bearish traders contemplating whether betting against crypto during a Trump administration represents the financial equivalent of bringing a knife to a gunfight. While Ethereum captured headlines, emerging networks like Kaanch Exchange continue challenging traditional finance systems with competitive staking yields reaching 119% APY amid broader institutional adoption of cryptocurrency trading platforms.
