Ethereum Short Squeeze vs. $1B USDT Mint: Will ETH Survive or Crash?

The digital asset market is once again heating up, and this time Ethereum news is in the spotlight. In just a few hours, $1 billion worth of USDT was created on the onchain, while hedge funds have opened a record $8 billion in short positions.

Now, the biggest question is: Will this lead to an Ethereum Short Squeeze that drives the price higher, or could it spark a sharp price crash? With both sides building huge bets, this update is dominating trader discussions today.

$1B ETH USDT Mint vs $8B Shorts: Who Holds the Upper Hand?

Fresh on-chain reports from Arkham Intelligence confirmed a massive ETH USDT mint worth $1B. Such a large issue of stablecoins normally means more money could flow into the market, boosting buying.

On the other side, hedge funds have lined up $8B in short positions, preparing for a potential dump.

This sets up a classic fight between bulls and bears. If the coin climbs above resistance, short sellers could face liquidation, causing a rapid Ethereum Short Squeeze.

But if bearish momentum wins, coin may slide quickly, raising fears of an price crash near $3,900. Many are warning this could be the biggest $ETH liquidation risk in months.

Technical Tension: ETH Price Chart Analysis Today

At present, the token is trading close to $4,267 after a small recovery. A closer look at the ETH price chart analysis today shows:

• Heavy resistance is at $4,400.

• First support lies near $4,100, deeper support around $3,900.

• RSI reading of 57 signals neutral momentum.

• MACD shows weak bearish signals, but selling strength is fading.

This means the token is stuck in a narrow zone. A push above $4,400 could lead to price target $4800, while losing $4,100 might open the door for a decline. Traders are waiting to see if a price breakout or dump comes first.

Weak Hands or Smart Money? Ethereum Price Prediction

Famous trader Merlijin described the coin's $4,800 level as the “final boss,” with billions of sell orders sitting there. Weak hands may panic at this point, while experienced players could take advantage.

• Short-Term (1–2 weeks): A break above $4,400 could fuel a rally to $4,800. Losing $4,100 risks a fall to $3,900.

• Mid-Term (1–2 months): Holding above $4,400 may send assets toward $5,000. Failure may pull the coin closer to $3,600.

• Long-Term (3–6 months): If staking and network demand remain strong, crypto could climb to $5,500–$6,000. Staying above $3,500 keeps the bullish story alive.

This makes altcoin one of the most closely-watched assets right now. Traders are split between seeing a fresh $ETH ATH or fearing another Ethereum price crash .

Conclusion Ahead: Will Ethereum Price Breakout or Dump?

This update shows a tense setup. On one side, the $1B ETH USDT mint could pump new money into the system. On the other, the $8B short attack may lead to a selloff.

If bulls break through $4,400 and aim for the $4800 resistance, the Ethereum Short Squeeze could be explosive. If sellers dominate, asset may face a dip before any recovery.

For now, the coin feels like a ticking clock. The next move will decide if the market explodes higher or slides lower. Investors should stay alert, because $ETH news today proves the token is at the center of the next big crypto narrative.