Eric Trump emerged from the digital shadows of social media platform X to deliver a pointed warning to Ethereum short sellers, celebrating what he described as “smoking” the bears as ETH surged past the psychologically significant $4,000 threshold for the first time since December 2024.
His timing proved exquisite—or perhaps prophetic—as over $120 million in Ethereum short positions evaporated within a brutal 24-hour window in early August 2025. The carnage included one particularly unfortunate trader who reportedly surrendered $15 million as ETH powered through $4,200, transforming bearish conviction into expensive education about momentum dynamics in volatile digital assets.
Over $120 million in Ethereum shorts obliterated as bearish conviction transformed into expensive education about crypto momentum dynamics.
Trump’s theatrical warnings against shorting cryptocurrency coincided with institutional capital flooding into the space with remarkable intensity. U.S. spot Ethereum ETFs absorbed $864 million in early August flows, with BlackRock’s ETHA fund alone capturing $189 million—institutional validation that rendered bearish positions increasingly precarious as corporate treasuries joined the acquisition spree.
The short squeeze mechanics unfolded with textbook precision once ETH breached the $4,100 level that traders had identified as critical resistance. Forced covering accelerated upward momentum, creating the feedback loop that transforms technical breakouts into psychological warfare between bulls and bears. Corporate acquisitions, including BitMine Immersion Technologies’ substantial 833,000 ETH position (worth approximately $3.2 billion), provided fundamental support beneath the technical pyrotechnics.
Trump’s consistent bullish messaging throughout previous market downturns established his credibility among retail traders who increasingly view celebrity endorsements as sentiment indicators. His influence exemplifies how political figures now shape cryptocurrency volatility through social media amplification, creating celebrity-driven trading patterns that traditional analysts struggle to quantify or predict.
The broader crypto market experienced over $200 million in total liquidations, with Ethereum accounting for more than half—a concentration that highlighted both the asset’s institutional appeal and the dangerous leverage deployed by bearish speculators.
Policy developments, including executive orders improving 401(k) cryptocurrency options, provided additional tailwinds that transformed what might have been a routine technical breakout into a liquidation cascade that vindicated Trump’s warnings while delivering expensive lessons about betting against institutional momentum in an increasingly mainstream asset class. Meanwhile, Ethereum’s growing dominance in decentralized finance continued to strengthen its fundamental value proposition, with Lido Finance leading the liquid staking revolution at $14.6 billion TVL, allowing investors to maintain liquidity while earning staking rewards on previously locked Ethereum holdings.
