A cascade of short liquidations totaling $313 million in a single hour propelled ETH past key Fibonacci resistance as Bitcoin cleared $85K.
Ethereum ripped 6% higher on September 21, touching $2,719 and punching through a Fibonacci resistance level at $2,672 that had capped rallies for months. The move wasn’t born in a vacuum. Bitcoin’s surge above $85,000 lit the fuse, and a mountain of leveraged short positions supplied the fuel.
The result was one of the most violent short squeezes of 2026, with more than $700 million in total crypto liquidations over 24 hours.
The squeeze mechanics
According to CoinGlass data, roughly $313 million in crypto positions were liquidated in a single hour during the peak of the rally. Of those, 96% were short bets.
Ethereum-specific short liquidations had already been building before the big day. Around September 18, when ETH first cleared $2,600, approximately $85 million in ETH shorts were wiped out as part of a broader $470 million liquidation event across crypto markets.
By the time Bitcoin punched through $85,000, hitting a session high of $85,257, the remaining short interest was dangerously exposed.
ETF inflows add a structural bid
US spot ETH exchange-traded funds recorded net inflows of $143.8 million around September 18, adding a layer of persistent buying pressure that doesn’t show up in futures open interest data.
Ethereum’s market capitalization swelled to approximately $330 billion during the session, marking multi-month highs not seen since January 2026.
Key levels to watch
The $2,672 Fibonacci level that ETH broke through on September 21 now becomes the line in the sand. Ethereum closed the previous week at $2,644, just below that threshold. Whether ETH can hold above $2,672 on a weekly closing basis will likely determine whether the rally has legs or was simply a leverage-driven spike that fades once the forced buying subsides.
If the level holds as support, traders are eyeing the $2,800 to $3,000 range as the next target zone. That would represent an additional 3% to 10% upside from current levels.
The ETH/BTC ratio is another metric drawing attention, measuring Ethereum’s performance relative to Bitcoin. Throughout much of 2026, Ethereum has underperformed Bitcoin on a relative basis, making any signs of ratio improvement particularly noteworthy for traders positioning in the altcoin market.
