Ethereum price surges 6% to $2,800 as shorts suffer amid $500M crypto liquidation

• Ethereum’s price rose 6% to above $2,800, driven by Bitcoin’s rally to $112,000 and optimism around ETH whale activity.
• The gains came as over $500 million in leveraged positions, including $139 million in ETH, were liquidated.
• Institutional interest and increased buying could drive Ethereum’s price higher.

Ethereum (ETH) rose a decent 6% in 24 hours to reach highs above $2,800, with the top altcoin buoyed by a broader market rally.

This is after Bitcoin (BTC) soared to a new all-time high above $112,000.

However, the sharp price movements triggered widespread liquidations, with over $500 million in leveraged positions wiped out across major exchanges.

Most of these were shorts, with cryptocurrencies rising alongside stocks on Wednesday.

Ethereum hits $2,800 as crypto sees market momentum

Ethereum’s climb to $2,821 in early trading on Thursday came as Bitcoin’s breakout above $112k lifted the broader digital assets space.

It’s this bullish sentiment that has ETH price up more than 6% and on the cusp of a breakout above $3,000.

According to data from CoinGecko, Ethereum’s trading volume spiked by 69% to over $29.8 billion, reflecting heightened market activity.

Apart from a broader market upswing, ETH is benefiting from regulatory developments and the anticipation of what is next for the top altcoin.

Whales and institutions are aggressively buying ETH, with Abraxas Capital withdrawing 29,741 ETH worth $81 million from crypto exchanges Binance and Kraken.

Lookonchain shows the transactions occurred within the last 12 hours.

Another wallet withdrew over 25k ETH tokens worth over $70 million from Kraken.

Notably, SharpLink Gaming, a company that holds over 205,634 ETH worth over $575 million, added to its haul with another 5,072 ETH worth over $13.5 million.

Over $500 million in liquidation signals market volatility

As Bitcoin and Ethereum rallied, the broader crypto market experienced over $500 million in liquidations, largely impacting leveraged traders who were caught off guard by the sharp price moves.

Data from Coinglass shows that total liquidations surged 285% in the past 24 hours, reaching over $538 million.

The bulk of the losses came from short positions, as traders betting against the market’s upward momentum faced significant losses.

Ethereum alone accounted for $156 million in liquidations, with $139 million of that tied to short positions, according to Coinglass.

Despite the liquidations, market sentiment remains cautiously optimistic, with institutional inflows into crypto exchange-traded funds (ETFs) and stablecoin reserves signaling sustained demand.

As Bitcoin continues to set new benchmarks, Ethereum’s role as a foundational blockchain for decentralized applications ensures its relevance in the evolving crypto landscape.

Currently, the Ethereum price has a key support zone near $2,500.

Meanwhile, a symmetrical triangle pattern suggests upward potential and is eyeing the $2,850 resistance.

If price breaks above $3k, it could target the $4k and all-time high levels.