Ethereum Reclaims $1,700 as Shorts Get Squeezed and Retail Longs Pile In

Ethereum climbed back above the $1,700 mark on July 4, forcing at least one large short-seller to close a losing position while on-chain data pointed to a fresh wave of retail buying. ETH traded at $1,756, up 3.02% on the day, according to AMBCrypto, as the asset pushed past levels that had recently capped its recovery.

Whale eats a $9 million loss as shorts get squeezed

The move above $1,700 triggered a broad unwind of bearish bets, with roughly $79 million in short positions liquidated once ETH crossed that threshold, AMBCrypto reported. On-chain tracker Onchain Lens flagged one whale that closed a $54.1 million ETH short position during the squeeze, realizing a $9.386 million loss and paying an additional $36,000 in funding fees.

The size of the loss suggests the trader chose to exit rather than risk further downside exposure or forced liquidation as price continued to rise. Ethereum also pushed above its MACD Signal Line and its 50-day and 100-day simple moving averages, sitting near $1,630 and $1,671 respectively, which analysts often read as a sign of strengthening momentum.

Retail traders lean bullish as long positions build

While whales were retreating from short bets, smaller retail traders appeared to be adding fresh exposure to the upside. CryptoQuant’s Ethereum Futures Average Order Size metric showed a rise in retail-sized orders clustering around the $1,600 and $1,700 price zones, a pattern AMBCrypto says indicates traders were actively opening new positions rather than closing existing ones.

Data from CoinGlass showed the aggregate long/short ratio across exchanges climbing above 1, reaching 1.03 overall. On Binance specifically, the ratio rose to 1.5, meaning long positions significantly outnumbered shorts as traders positioned for continued gains.

Can ETH hold momentum toward $2,000?

Momentum indicators broadly support the case for further upside. The daily Relative Strength Index climbed to 54, moving past the neutral 50 level that typically signals buyers gaining control, per AMBCrypto’s analysis of TradingView data. The MACD Signal Line moving averages also held above recent support, reinforcing the improving technical picture.

If bulls sustain control, ETH could aim to reclaim $1,800 before attempting a run toward $2,000, according to the report. However, spot-market selling remains a downside risk: Onchain Lens noted a deposit of 9,876 ETH, worth $17.02 million, into Binance by an address linked to Chun Wang. Continued large inflows to exchanges could reintroduce selling pressure and send Ethereum back toward the $1,640 level.

Read more: Ethereum’s Rare Monthly Buy Signal Sparks Talk of a Run Toward $2,000