Ethereum Surges 10% on Trump Ceasefire News, $1.4 Billion Inflows

Ethereum has experienced a significant surge in momentum as the broader crypto market responded positively to the announcement of a ceasefire by President Trump. This development has injected a wave of optimism across various risk assets, including the crypto market. Ethereum saw over $1.4 billion in net inflows last week, indicating strong confidence from both institutional investors and retail participants.

Despite the overall market turbulence, Ethereum's usage metrics continue to climb, suggesting that current price levels are being viewed as a strategic entry point by investors. This inflow momentum, combined with macroeconomic optimism, strengthens the case for Ethereum to lead the next phase of the crypto market recovery.

Ethereum's price action is currently at a critical juncture, with a dense cluster of short liquidation levels stacked above $2,900. As traders accumulate aggressive short positions, the potential for a sharp squeeze grows. The accumulated liquidation data shows a significant imbalance favoring short exposure, which amplifies the risk of a cascading rally if Ethereum's price pushes higher.

Historically, prevailing market fear has often signaled a local bottom, and the current environment may be setting up for a swift bullish reversal. Ethereum's daily chart shows signs of a potential shift in momentum, with the Relative Strength Index (RSI) bouncing from oversold territory and currently hovering near 45, suggesting that selling pressure may be fading. The Moving Average Convergence Divergence (MACD) also shows a narrowing gap between the signal and MACD lines, hinting at a possible bullish crossover if momentum sustains.

Volume spikes on recent green candles point to renewed interest, although Ethereum continues to hover near the $2,400 range. While not a confirmed reversal, these technical cues imply that Ethereum could be bottoming out, setting the stage for a potential upward breakout if sentiment improves. The current market conditions present an opportunity for Ethereum to capitalize on the nervousness in the broader crypto market and lead the next leg of the recovery.