Ethereum News Today: Ethereum Reclaims $3,800 Triggering $150M Short Liquidations 60% from Bearish Bets Completes Golden Cross

Ethereum (ETH) has reclaimed the $3,800 price level, triggering a wave of short liquidation clusters and completing a bullish golden cross pattern on the ETH/BTC price chart, signaling renewed optimism in the market [1]. The price action marks a pivotal shift for the second-largest cryptocurrency by market capitalization, as traders and analysts reassess their positions following months of consolidation. The golden cross—defined by the 50-day moving average crossing above the 200-day moving average—has historically been associated with sustained upward momentum, drawing comparisons to Ethereum’s post-merge recovery in mid-2024 [1].

The recent price rebound began after ETH tested support near $3,500, a critical level that had previously acted as a floor during earlier corrections. Short sellers had aggressively positioned against the asset, creating dense liquidation clusters above $3,800. As the price closed above this threshold, automated liquidation mechanisms forced a significant portion of bearish bets to unwind. On-chain data revealed liquidation volumes exceeding $150 million in a 24-hour period, with over 60% of losses attributed to short positions [1]. This dynamic generated a self-reinforcing cycle, where forced buying pressure temporarily accelerated the price upward, propelling ETH back toward the $3,800–$3,900 range [1].

The completion of the golden cross has added technical credibility to the rally. Analysts note that the 200-day moving average currently sits at approximately $3,650, aligning with recent support levels and reducing the likelihood of a sharp retracement [1]. However, the $4,200–$4,500 range remains a key test of broader market participation. A derivatives strategist highlighted that while the golden cross is a positive catalyst, its sustainability depends on institutional capital inflows. Open interest in ETH futures has risen by 18% over the past month, indicating growing speculative activity [1].

The broader crypto market is also reacting to Ethereum’s resurgence. The asset’s dominance metric—measured as its share of total crypto market capitalization—has climbed to 18.7%, the highest level since early 2024 [1]. This trend reflects capital rotation into altcoins as confidence in Ethereum’s fundamentals, including the upcoming Shanghai upgrade and EIP-4844 implementation, strengthens. Yet, Bitcoin’s performance as the market’s bellwether remains a wildcard, with the two assets historically exhibiting a 0.65 price correlation [1].

Traders are now monitoring whether the $3,800 level can hold as a baseline for further advances. A breakdown below this support could trigger a retest of the $3,500–$3,400 range, where additional liquidity is expected. Conversely, a sustained breakout above $4,000 may attract algorithmic buying from long-term institutional funds and ETFs. On-chain metrics show the number of Ethereum addresses holding over $10,000 in ETH has increased by 12% quarter-to-date, reflecting a growing base of accumulation [1].

The price action has also been influenced by external factors. Galaxy Digital’s recent sale of 80,000 BTC, part of a $9 billion portfolio of Satoshi-era holdings, initially pressured Bitcoin to $115,000, triggering over $107 million in liquidations. However, the market absorbed the shock without significant bearish momentum, with BTC and altcoins recovering swiftly [1]. Analysts attribute this resilience to the broader bullish cycle, with ETH now positioned to challenge its previous all-time highs [1].

Source: [1] [Bitcoin Trade Ideas — BITSTAMP:BTCUSD] [https://www.tradingview.com/symbols/BTCUSD/ideas/page-18/].