Ethereum is approaching a decisive moment that could reshape the market. A four-year symmetrical triangle has set the stage for a major breakout, and the latest charts suggest the move is already underway.
After clearing $4,000 with strength, Ethereum surged to $4,950 before easing into a textbook retest of support. At the same time, fresh data shows more than $10 billion in short positions now exposed to liquidation risk if price climbs just 10%.
According to the Crypto GEM, the convergence of technical strength and market positioning points to the possibility of a powerful rally toward $21,000.
Ethereum Price to Soar to $21,000
According to a tweet by The Crypto GEM, Ethereum is on the verge of a breakout to $21,000. The chart highlights a four-year symmetrical triangle, one of the most powerful continuation patterns in technical analysis. This formation has now entered a decisive phase, with Ethereum confirming its breakout above the $4,000 level and retesting former resistance as new support.
The breakout move was swift, carrying price momentum up to $4,950 before cooling off. What followed is a textbook retest of the upper boundary of the triangle, an area that has now shifted from resistance into a potential launchpad for higher levels. At the moment, the $3,900 zone stands out as the key level to hold. It represents the heart of the retest, where buyers are expected to step in with conviction.
Technically, there is room for Ethereum to extend its pullback slightly deeper, with $3,700 forming the outer edge of the support range. However, this $3,700–$3,900 area now looks like a strong bottoming zone, a foundation from which the next bullish leg can emerge.
If buyers defend this level successfully, the first significant upside target is the head‑and‑shoulders projection at $5,900. A break beyond that level would clear the path for much larger gains.
The broader symmetrical triangle pattern, stretching across four years of price history, projects a long‑term target near $21,000, a level that could be tested toward the end of the year if momentum holds.
In short, Ethereum is at a pivotal point. The structure of the chart favors the bulls as long as price remains above $3,700. From here, the market’s next move could set the tone for one of the biggest rallies the cryptocurrency has seen in years.
$10B Worth of ETH Short Positions Face Liquidation Risk
Meanwhile, a short squeeze looms in the corner as $10 billion worth of short positions face an imminent risk of liquidation if Ethereum price rallies by 10%.
According to fresh data from Coinglass, the ETH liquidation map shows a growing cluster of short positions stacked above the current price of $3,991, making the market particularly vulnerable to a sharp upward move.
The chart below illustrates that a significant amount of leverage is concentrated in the $4,100 to $4,400 zone. If Ethereum pushes through this band, liquidations could snowball rapidly, forcing short sellers to buy back at higher prices. This type of cascading effect often fuels sudden, violent rallies—commonly referred to as a short squeeze.
At the same time, the data shows relatively muted liquidation pressure on the long side. Cumulative long liquidation leverage has been shrinking, suggesting traders on the bullish side have reduced exposure, while short positions remain heavy. This imbalance creates an asymmetric risk profile: the downside appears cushioned, while the upside could accelerate dramatically if resistance levels break.
The immediate area to watch is $4,200, where liquidation clusters peak across Binance, OKX, and Bybit. If Ethereum clears this threshold, the path toward $4,400 could unfold quickly, setting the stage for billions in short positions to be wiped out in rapid succession.
In essence, Ethereum sits at the crossroads of technical momentum and market positioning. A modest 10% price rise could unleash a chain reaction that forces shorts to cover en masse, amplifying the rally well beyond its initial breakout. For traders, the stakes have rarely been higher.