ETH price drop to $3K sets stage for $7B short squeeze if crypto market recovery holds

ETH’s flash crash to $3,050 cleared out $1.3 billion in leveraged long positions, creating a market imbalance with $7 billion in short liquidity. Will a short squeeze send ETH above $4,000?

Key takeaways:

Ether dipped to $3,055, wiping out $1.3 billion in long liquidations across exchanges.

Over $7 billion in short positions near $4,000 sets up potential for a sharp squeeze.

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