Ethereum News Today: Ethereum's Surge Shook Traders as $388M in Bets Crashed

Ethereum short liquidations reached an unprecedented $388 million in the 24 hours following the cryptocurrency’s surge above $4,800, marking the highest level of liquidations among all crypto assets during the period. This came as part of a broader $769 million in marketwide liquidations, impacting over 183,000 traders, with a single $10 million ETH swap order on OKX standing out as the largest individual loss [1]. The sharp increase in liquidations reflects the heightened use of leveraged positions and the vulnerability of traders to rapid price movements, especially in a market where volatility remains a defining feature [2].

The surge in Ethereum’s price was driven by a combination of macroeconomic factors and growing institutional interest. The price climbed nearly 15% to a record $4,885 after Federal Reserve Chair Jerome Powell hinted at the possibility of a rate cut in September during his Jackson Hole speech. This dovish signal triggered a risk-on sentiment across markets, with ether outperforming Bitcoin, which rose by only 4% to $113,000 during the same period [3]. Analysts attributed the broader rally to not just macroeconomic expectations but also to the increasing adoption of Ethereum by institutional investors, particularly in stablecoin and tokenization ecosystems, which are now seen as critical to the blockchain’s future utility [1].

Ethereum’s price momentum has also been supported by strong on-chain inflows, with Ethereum-focused investment products attracting $2.86 billion in the week ending August 15, according to CoinShares. This marked a significant shift from Bitcoin, which saw only $552 million in inflows during the same period [8]. The shift in capital flows has further solidified Ethereum’s position in the crypto market, with its dominance increasing to the point where Bitcoin’s market share fell below 60%—a rare event since March. Institutional buying of Ethereum treasuries has also played a role, with corporate entities acquiring over $1.6 billion worth of ETH in the past month [5].

The broader macroeconomic environment and regulatory developments have further contributed to Ethereum’s rise. The U.S. Securities and Exchange Commission’s Project Crypto and the proposed GENIUS Act have been seen as catalysts for increased institutional participation in the Ethereum blockchain. Additionally, Ethereum’s role in powering over half of all blockchain fees has reinforced its position as the backbone of the decentralized finance (DeFi) ecosystem. Analysts, including Fundstrat’s Tom Lee, have highlighted the comparison of stablecoins to the “Chat GPT moment” for crypto, signaling a fundamental shift in the market’s perception of Ethereum’s utility [6].

Looking ahead, expectations for Ethereum’s price remain bullish. Some analysts predict that ether could surpass $10,000 if stablecoin solutions for U.S. payments gain traction. The year-to-date gain for Ethereum now stands at 45%, and while the market remains subject to volatility, the current trajectory suggests that Ethereum is well-positioned to continue its ascent as a preferred blockchain for institutional investors [2].

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] Ethereum Bets See Unusually High $400M Liquidations as ... (https://finance.yahoo.com/news/ethereum-bets-see-unusually-high-064733802.html)

[3] Ether notches first new record since 2021 after Powell ... (https://www.cnbc.com/2025/08/22/crypto-market-today.html)

[4] Ethereum brushes record high after Fed chair says ... (https://fortune.com/crypto/2025/08/22/ethereum-price-today-bitcoin-jerome-powell-fed-chair-jackson-hole/)

[5] 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)

[6] Ethereum Chain Dominates With $516M Net Inflows In 7 ... (https://www.mitrade.com/insights/news/live-news/article-3-1063605-20250823)

[7] Ethereum Surpasses Bitcoin: ETF Boom Driven by ... (https://itbfx.com/news/ethereum-surpasses-bitcoin-etf-boom-driven-by-institutional-inflows/)