Ethereum climbed 5.4% to $2,725, driven primarily by a Bitcoin-led short squeeze rather than isolated demand for the second-largest cryptocurrency. The price movement pushed Ethereum above the $2,672 Fibonacci retracement level intraday, a threshold traders have monitored closely as a potential trigger for a move toward $3,000. However, the weekly close on September 20 ended at $2,644, leaving the key resistance unconfirmed by a full week of trading.
The rally originated with Bitcoin, which surged from $84,000 to $85,257 on September 21. According to CoinGlass, exchanges liquidated $313 million in positions during that hour, with 96% of those liquidations being short trades. This forced buying pressure pushed the broader crypto market higher, benefiting assets like XRP, which rose 6.4%, and Solana, which gained 6.6%. Ethereum’s 5.4% increase reflects this general market squeeze, with its market capitalization reaching approximately $332.5 billion.
For the $2,672 level to be considered reclaimed by analysts, a weekly close above that price is required. The upcoming weekly close on September 27 will determine if Ethereum holds its ground. A daily close above $2,800 would indicate sustained upward momentum following the initial spike. If these conditions are met, the path opens toward the $2,950 to $3,000 zone. This area is significant because Ethereum ended 2025 at $2,967, making it a critical benchmark for assessing performance this year.
Ethereum has gained 73% since July 1, with spot Ethereum ETFs serving as the main regulated route for that buying. The asset is currently down about 8% for 2026. If the price falls below $2,616, support levels at $2,600 and $2,405 come into play, which could return the price to its August trading range. The next major technical event is the Glamsterdam Sepolia test on October 6, a rehearsal for an upcoming network upgrade scheduled to occur after the key weekly close.