Ethereum Sharks Strike Again, Target Set on a Giant Short Squeeze

Ethereum (ETH) has just reclaimed the $3,200 zone, and beneath the surface, something far more dramatic is unfolding. The wallets that traditionally lead ETH’s biggest moves – the sharks holding between 1,000 and 10,000 ETH – have quietly begun buying again.

Their accumulation streak aligns with one of Ethereum’s most powerful on-chain signals of the year: a sudden explosion in network growth that added nearly 190,000 new wallets within 24 hours, according to the data shared by Santiment in an X post on December 4.

It’s the kind of behavior analysts look for at the start of a trend shift. When seasoned wallets increase exposure while new addresses flood the network, Ethereum often enters a period of sustained volatility with an upward bias. And this time, the stakes may be even higher.

Market Pinned Between Confidence And Collapse

While accumulation continues, Ethereum has also drawn a clear battle line on the chart. Renowned cryptocurrency analyst Ali Martinez has highlighted $3,180 as the level the market must reclaim decisively to continue higher in the analysis he shared on December 4.

Beneath it sits the critical $2,800 support zone, where more than 2.6 million ETH changed hands. If the price slips below that shelf, conviction evaporates quickly. If it holds, it becomes fuel for a new rally.

But another force is quietly building pressure under the market. A liquidation map posted shows that if Ethereum trades up to roughly $3,500, over $5.8 billion in short positions will be forced to unwind. 

That would create a wave of automated buying powerful enough to turn a modest rally into a runaway squeeze. The kind that shocks everyone who thought the move was already extended.

At the moment, ETH is trading at $3,192.11, up 4.48% on the day, gaining 5.15% across the week, as it moves to minimize the loss of 8.26% accumulated on its monthly chart, according to the most recent pricing information.

Meanwhile, Ethereum developers are pushing forward with the eagerly awaited Fusaka upgrade, which is the latest step in scaling the network securely. Upgrades tend to create mixed emotions in the market, including excitement about future capacity paired with near-term uncertainty.

But when combined with rapidly rising network participation, the backdrop becomes far more compelling.

Whether this moment marks the beginning of an extended climb or just another test of investor patience, the signs are unmistakable – smart money is preparing for movement, liquidity is stacked tightly above current prices, and the network itself is accelerating at a pace not seen in months.

Ethereum is sitting on the edge of a structure that could give way to either a breakout or a battle. And the sharks are already choosing their side.

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