Ethereum faces the largest short position pressure in history! A rebound could trigger a multi-billion dollar liquidation wave. Recently, the price of Ethereum (ETH) broke below the $4,300 mark, with volatility sharply increasing. After several weeks of strong gains that reached multi-year highs, bulls are struggling to hold the critical support level of $4,200-$4,250. Market data shows that ETH is under the largest short position pressure in history, which could trigger a massive short squeeze and explosive rise in a short time once a rebound occurs. Largest short positions in history: a mix of crisis and opportunity. Derivative market data indicates that the short leverage position of ETH has reached an all-time high, reflecting the market's strong bet on a short-term downside. Analyst Ted Pillows pointed out that this extreme imbalance could become a catalyst for a "perfect storm": if a rebound starts, shorts will be forced to cover at higher prices, triggering a chain liquidation. Historical cases: similar situations in the past have led to a 15%-25% surge in ETH in a short period. The fundamentals remain strong: institutional holdings and on-chain data support. Despite the short-term pressure on price movements, the long-term fundamentals of ETH remain bullish: institutional capital inflow: ETFs, asset management plans, and on-chain accumulation continue to boost institutional holdings. Decreased supply on exchanges: More ETH has been transferred to cold wallets and staking contracts, reducing market Circulating Supply. Ecosystem expansion: The growth of DeFi, NFTs, and Layer 2 solutions has solidified ETH's core position in the digital asset space. These factors provide long-term support for ETH, and even with increased short-term volatility, it is difficult to shake off its long-term value. Technical analysis: $4,200 is the watershed for bulls and bears. ETH is currently priced at $4,284, testing the demand zone of $4,200-$4,250: Support level: coincides with the 100-day MA, which has historically acted as a rebound starting point. Resistance level: If the rebound is successful, the primary challenge is $4,500-$4,600, followed by the yearly high of $4,800. Risk level: A drop below $4,200 could trigger a pullback to $4,000 or even $3,920 (200-day MA). Charts show an increase in red Trading Volume bars recently, indicating heightened selling pressure, but bulls are still actively defending the support zone. Short-term outlook: Short squeeze could become the biggest variable. If ETH holds above $4,200 in the coming days and shows a technical rebound, the concentration of short positions will fuel a rapid price surge. Potential targets: $4,500 → $4,600 → $4,800. Liquidation scale: According to derivative open interest data, breaking above $4,300 could trigger multi-billion dollar short liquidations. Conversely, if the support is lost, a deeper pullback will occur, and market sentiment may turn cautious. Conclusion: Ethereum is at a moment of intense confrontation between bulls and bears: the largest short positions in history stand in stark contrast to the strong fundamentals. The $4,200 support level will determine ETH's short-term trend—holding it could trigger a short squeeze, while losing it may lead to a pullback to $4,000. For traders, this is a high-risk, high-reward game. For more real-time ETH market conditions and technical analysis, please follow the official Gate platform.