Ethereum News Today: Ethereum's Surge Shatters Shorts, Reveals Market's Fragile Leverage

Ethereum (ETH) experienced significant price surges in late August 2025, reaching an all-time high of $4,885. This rally led to a sharp increase in short liquidations across the market, with over $388 million in ETH-related short positions wiped out within 24 hours, the highest among all crypto assets. The total liquidations across the market amounted to $769 million, affecting over 183,000 traders. The largest single loss was a $10 million ETH swap on OKX, an unusually high figure for the asset, which typically ranks second to Bitcoin in terms of liquidation volumes.

The surge was largely driven by comments from Federal Reserve Chair Jerome Powell, who signaled the possibility of a 25 basis point rate cut in September, boosting risk-on sentiment. Ethereum’s price jumped nearly 15% following Powell’s remarks, surpassing its 2021 high. Institutional adoption also played a key role, with corporate treasuries and ETFs adding $1.6 billion in ETH holdings in the previous month. As of the end of August, Ethereum ETFs had attracted $287.6 million in net inflows, ending a four-day outflow streak and pushing total inflows above $12 billion. BlackRock’s iShares Ethereum Trust (ETHA) led the inflow surge with $233.5 million, indicating strong institutional confidence in the asset.

The liquidation data highlighted the volatility and leverage prevalent in the market. Over the past 12 hours, total liquidations across the network amounted to $526 million, with $429 million attributed to short positions. Ethereum accounted for $315 million of that, more than four times the $74 million in Bitcoin-related liquidations. Analysts noted that the surge in liquidations reflects the fragility of leveraged positions in a rapidly moving market. When short positions face large price surges, exchanges automatically close these bets, leading to cascading losses and further fueling bullish momentum.

Institutional demand for Ethereum has also been bolstered by growing adoption in DeFi and stablecoin ecosystems. The token’s use as a reserve asset by corporations and its integration into smart contract platforms have reinforced its appeal beyond speculative trading. Standard Chartered raised its year-end price target for ETH to $7,500 from $4,000, with some analysts projecting ETH could reach $13,000 if current demand continues. The rising demand has been supported by a significant drop in Bitcoin’s market dominance, which fell below 60% for the first time in four months, signaling a shift in capital toward altcoins like Ethereum.

Meanwhile, the European Union is exploring the use of public blockchains like Ethereum and Solana for its upcoming digital euro project. This move represents a strategic shift away from the China model of centralized CBDCs toward open, interoperable systems. The ECB is evaluating whether a public blockchain could offer advantages in transparency, accessibility, and innovation while maintaining regulatory compliance. Ethereum and Solana are being considered for their proven scalability and global adoption. If implemented, the digital euro on a public chain could serve as a model for other jurisdictions and reinforce the euro’s position in a rapidly evolving global financial landscape.

Source:

[1] ETH Price Prediction: Traders Target $10K ETH Amid $400 (https://www.coindesk.com/markets/2025/08/23/ethereum-bets-see-unusually-high-usd400m-liquidations-as-some-now-target-usd10k-eth)

[2] Data: In the past 12 hours, the total liquidation across (https://www.chaincatcher.com/en/article/2199712)

[3] ETH Soars To New All-time High On Fed Rate Cut Signal (https://cointelegraph.com/news/eth-hits-new-highs-as-fed-turns-dovish-ether-etf-inflows-resume)

[4] BlackRock leads $287M spot Ether ETF inflows after 4-day (https://cointelegraph.com/news/spot-ether-etfs-287m-inflows-blackrock-fidelity-eth-reserves)

[5] Ethereum ETFs Pull in Historic Inflows as Institutions Shift (https://cryptodnes.bg/en/ethereum-etfs-pull-in-historic-inflows-as-institutions-shift-focus)

[6] EU Considers Ethereum, Solana for Digital Euro Amid (https://yellow.com/news/eu-considers-ethereum-solana-for-digital-euro-amid-stablecoin-sovereignty-push)