Ether surged as much as 8.3% intraday on September 11, briefly topping $2,600, after a wave of short-position liquidations forced bearish traders to buy back at higher prices. More than $255 million in ETH shorts were wiped out in 24 hours, alongside a comparable squeeze in Bitcoin the same day.
Ether ripped higher on September 11, surging as much as 8.3% intraday to briefly top $2,600, its strongest single-day move in weeks. The catalyst wasn't a protocol upgrade or an ETF approval — it was bears getting forced out of their positions.
More than $255 million in Ether short positions were liquidated over a 24-hour stretch, according to Coinglass data. Roughly $188 million of that evaporated in a single hour.
Anatomy of a short squeeze
A short squeeze works like a chain reaction. Traders borrow an asset and sell it, betting the price will fall. When the price rises instead, they must buy back at higher levels to cover losses, which pushes the price up further and forces more covering.
That is exactly what played out across crypto markets on Wednesday. Bitcoin saw approximately $172 million in short liquidations during the same window, though its price gains were comparatively modest at less than 4%.
Total liquidations across the crypto market exceeded $500 million, with the overwhelming majority coming from short positions. Ether's jump to $2,600 marked the first time the token crossed that threshold in months.
Hot inflation data lit the fuse
The cascade did not happen in a vacuum. It unfolded against fresh US economic data, specifically inflation readings that came in hotter than expected, while oil prices declined during the same session.
As the rally intensified, traders holding short positions faced escalating funding rate costs to stay in their positions. At some point the math stops working, and liquidation engines take over. The pattern has repeated throughout the year, with both Bitcoin and Ether experiencing multiple liquidation-driven squeezes often triggered by macro data releases that catch leveraged traders offside.
Ether's outperformance relative to Bitcoin in this episode — an 8.3% move versus less than 4% — suggests ETH-specific positioning was more aggressively bearish heading into the data release.
Source: Crypto Briefing
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