Ethereum News Today: Ethereum Surges Past $3,800 as $28.41M Shorts Crushed in 2.2% Rally

Ethereum (ETH) surged past $3,800 on July 19, 2025, marking a significant reversal in investor sentiment amid a wave of short-position liquidations totaling $28.41 million. The price rally, which saw the second-largest cryptocurrency by market capitalization climb nearly 2.2% in 24 hours, intensified pressure on bearish traders, with aggressive long positions outpacing short-term selling. The move underscored growing confidence in Ethereum’s post-merge performance and broader market optimism, particularly as macroeconomic indicators and institutional adoption trends began to align with bullish narratives [1].

Ethereum’s price reached $3,816 by 10:40 a.m. Eastern time, with its market capitalization rising to $460 billion, representing 11.8% of the total $3.91 trillion crypto market. Over the past month, the asset had surged 56.8%, driven by heavy global trading activity. Derivatives platforms reported a 34% increase in liquidation volumes compared to the previous week, with Ethereum accounting for over 40% of total crypto liquidations. The largest single liquidation event involved a $1.10 million ETH-USDT-SWAP order on OKX, entirely wiped out as buying momentum accelerated [1].

The liquidations primarily targeted leveraged short positions, which had been established ahead of key macroeconomic data releases. Short sellers, who had bet on Ethereum’s decline, were forced to exit positions as the price pushed past critical resistance levels. On-chain data revealed that Ethereum’s moving averages showed a bullish bias across all timeframes, including the 200-day mark, suggesting sustained upward momentum. Meanwhile, the momentum oscillator flashed a bearish signal, indicating potential short-term volatility despite the overall positive trend [1].

Analysts noted that Ethereum’s breach of the $3,800 psychological threshold reinforced a positive technical outlook. Non-custodial wallet activity had risen 20% over the past 30 days, signaling increased retail participation. The open interest to price (OI/P) ratio dipped below 0.3, a level historically associated with reduced bearish conviction and potential exhaustion of selling pressure. While some traders cautioned against over-optimism, the absence of meaningful bearish forecasts from major analysts added weight to the argument that Ethereum’s fundamentals were outpacing short-term volatility [1].

The price action coincided with renewed discussions about Ethereum’s scalability upgrades, including the impending Dencun hard fork, which is expected to reduce gas fees and enhance transaction throughput. Investors interpreted these developments as catalysts for long-term growth, though the immediate impact on price remained speculative. Market participants emphasized that the liquidation event highlighted the risks of leveraged trading in highly liquid markets, where rapid reversals can amplify losses.

Source: [1] [Bitcoin.com - Ethereum Rockets Past $3,800 as Shorts Get Crushed With $28M Liquidated] [https://news.bitcoin.com/ethereum-rockets-past-3-8k-as-shorts-get-crushed-with-28m-liquidated/]