Ethereum Gains Bullish Momentum After Massive Short Liquidations

Source: CryptoDaily Original Title: Ethereum Gains Bullish Momentum After Massive Short Liquidations Original Link: https://cryptodaily.co.uk/2025/12/ethereum-gains-bullish-momentum-after-massive-short-liquidations Ethereum is showing renewed strength after a sharp rebound driven by forced short liquidations. The move has shifted short-term momentum in favor of buyers, with price now pressing into a key resistance zone that will determine whether the rally can extend further.

Short Liquidations Fuel ETH Rebound

ETH rebounded from the $2,920 level after triggering approximately $18 million in short liquidations. As bearish positions were closed, traders were forced to buy back ETH, adding immediate upward pressure to price action.

This liquidation-driven move helped Ethereum stabilize and reverse recent losses, setting the stage for a broader recovery attempt.

Price Tests Critical Resistance Zone

Following the rebound, Ethereum is now testing the $2,950--$3,000 resistance area. This zone carries technical significance, aligning with key Fibonacci retracement levels and acting as a psychological barrier for the market.

Price behavior around this range will be decisive. Sustained acceptance above $3,000 would signal a clear shift in short-term structure and strengthen the bullish case.

Momentum indicators support the improving outlook. The MACD histogram has flipped positive at +3.41, indicating growing bullish momentum and increasing buyer control.

This shift suggests that the rebound is not solely liquidation-driven but may be developing into a more sustained move if supported by follow-through buying.

ETH Upside Targets

A confirmed daily close above $3,000 would open the door for a move toward the $3,190--$3,310 range. This area marks the next technical zone of interest and could attract additional momentum-based buying if the breakout holds. Failure to clear resistance, however, would likely result in renewed consolidation below $3,000.

Outlook

Ethereum's rebound from $2,920, fueled by significant short liquidations, has shifted short-term momentum back to the upside. With momentum indicators turning positive, the market now looks to the $3,000 level for confirmation. A successful breakout would support further gains, while rejection would keep ETH range-bound in the near term.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.