Ethereum News Today: Over $400M in crypto liquidations as Ethereum surges near $4,000

More than $400 million in leveraged cryptocurrency positions were liquidated within 24 hours as Ethereum (ETH) surged toward $4,000, marking one of the largest liquidation events in recent months. The rapid price movements caught bearish traders off guard, triggering margin calls and significant losses, especially among short positions [1]. According to data from CoinGlass, 80% of the liquidations came from traders who had bet against a market rebound, many of whom were using high leverage [1].

Ethereum-related liquidations alone totaled $187 million, the largest by asset, followed by $57 million in Bitcoin (BTC) and $28 million in XRP. The largest single liquidation occurred on HTX, with a $34.28 million trade executed in the ETH/USDT pair [1]. Over 113,000 traders were affected in the 24-hour period, underscoring the widespread impact of the market’s sharp reversal.

The surge in prices was fueled by key developments, including the resolution of the Ripple v. SEC case and the announcement of a new executive order by Donald Trump that could allow 401(k) investors to allocate funds into alternative assets, including cryptocurrencies. These developments helped drive Bitcoin to nearly $117,000, while Ethereum climbed 5% in the same period [1]. Altcoins also benefited, with XRP rising 12% to $3.36 and Stellar (XLM) reaching a two-week high of $0.46.

Despite the positive price action, the massive liquidations highlight the inherent risks of leveraged trading in a highly volatile market. Short-sellers, who had anticipated a continuation of the downtrend, were caught in a rapid bullish reversal. This event reflects the fragile balance between bullish and bearish momentum, with leveraged positions amplifying market swings [1].

Analysts have not issued specific forecasts for the near-term price of Ethereum, but the current trend suggests that the market remains in a consolidation phase. While the recent developments have boosted investor sentiment, the high volume of liquidations indicates that the rally could be short-lived if bearish forces regain control. Traders are advised to remain cautious and manage risk effectively as the market continues to test key resistance levels [1].

Source: [1] Liquidations Top $400 Million as Ethereum (ETH) Nears ... (https://cryptopotato.com/liquidations-top-400-million-as-ethereum-eth-nears-4000-bears-in-disbelief/)