Ethereum Nears $1,800 Threshold as Short Squeeze Fuels Recovery

The recovery follows a volatile period triggered by U.S. strikes on Iranian targets, which prompted a broad sell-off. Sentiment shifted within 24 hours as escalation fears subsided, bolstered by a 4% jump in South Korea’s Kospi index that signaled a wider appetite for growth assets. Despite U.S. spot Ether ETFs recording $52 million in net outflows on Thursday, crypto-native buying and overseas demand have effectively absorbed the selling pressure.

Technical indicators suggest the momentum may hold, with Ethereum reclaiming the $1,750 level on the daily chart. On the 4-hour timeframe, the asset has cleared the 78.6% Fibonacci retracement at $1,773. Analysts note that a dense cluster of short liquidations between $1,790 and $1,810 could act as a catalyst for further gains if bulls successfully breach this resistance. While analyst Ted Pillows points to increasing spot demand as a driver toward the $1,850–$1,900 range, others remain cautious; the $1,800–$1,833 zone serves as a critical hurdle. Failure to maintain support at $1,750 would likely invite renewed bearish pressure, potentially retesting the $1,620 floor.