Ethereum News Today: Ethereum Surges 65% YTD as $135M in Short Positions Liquidated

Ethereum experienced a sharp price rally on August 13, 2025, triggering the liquidation of approximately $135 million in short positions. The rapid upward movement forced high-leverage traders to close their bearish bets, particularly on exchanges such as Binance. This event underscored the heightened risks associated with leveraged trading during periods of high volatility [1]. The liquidation wave not only had a direct financial impact on short-sellers but also created cascading effects, further amplifying price swings [1].

The market’s bullish momentum was evident as the overall crypto market capitalization surged by $116 billion on the same day. This growth reflected strong institutional buying pressure and renewed investor confidence in the digital asset class [1]. Ethereum had already gained 65% year-to-date, outperforming Bitcoin in terms of ETF inflows and institutional adoption [2]. One notable short position that was quickly unwound belonged to trader AguilaTrades, who had opened a 5,000 ETH bearish bet at $4,684.59 [5].

On-chain data revealed that a wallet linked to Metalpha deposited 5,000 ETH—valued at around $20.91 million—into Binance. This activity signaled potential institutional involvement and suggested further inflows into the Ethereum market [9]. Market observers also noted a growing imbalance in options trading, with short-tenor volatility skewed toward call options, reinforcing investor optimism [7].

The Ethereum rally coincided with a broader upward trend in the crypto market. Bitcoin surged above $120,000, eliminating 92.55% of short positions in a single day. This was largely driven by strong institutional demand, particularly through spot ETFs, which recorded $246.75 million in inflows the previous week [8]. Additionally, the Securities and Exchange Commission’s statement that crypto liquid staking does not constitute a securities offering added to the favorable regulatory environment [8].

Despite the strong price action, traders remained cautious ahead of key macroeconomic data, including the July U.S. CPI report, which could influence future interest rate decisions and investor behavior [8]. Analysts, however, remained optimistic, with some forecasting that Ethereum could break through the $4,000 level based on the strength of ETF inflows and increasing institutional adoption [3].

The liquidation of Ethereum shorts on August 13 marked a psychological turning point, with traders shifting focus toward the next resistance levels and potential for further gains. As the market continues to evolve, the interplay between institutional inflows, regulatory developments, and on-chain activity will remain key drivers of Ethereum’s trajectory [3][6][7].

Source:

[1]title1.............................(https://en.coinotag.com/ethereum-shorts-liquidated-as-market-rally-sparks-volatility-and-bullish-sentiment/)

[2]title2.............................(https://www.ainvest.com/news/ethereum-news-today-ethereum-consolidates-65-rally-altcoin-season-gains-momentum-2508/)

[3]title3.............................(https://www.fastbull.com/analyst-article/bullish-momentum-could-regain-speed-4339189_0)

[5]title5.............................(https://bitcoinworld.co.in/eth-short-aguilatrades-bet/)

[6]title6.............................(https://www.tradingview.com/symbols/ETHUSD.P/ideas/)

[7]title7.............................(https://www.blockscholes.com/research)

[8]title8.............................(https://www.fxstreet.com/cryptocurrencies/news/bitcoin-price-forecast-btc-closes-in-all-time-highs-wiping-out-vast-majority-of-short-positions-202508111045)

[9]title9.............................(https://blockchain.news/flashnews/on-chain-alert-metalpha-linked-wallet-deposits-5-000-eth-20-91m-to-binance-exchange-inflow-flagged-by-lookonchain)