Ethereum’s price surge continues to capture the attention of traders and investors alike, with a 5% jump propelling the price to new short-term highs. This upward momentum has put approximately $2 billion in short positions at risk of liquidation, signaling a potential shift in market sentiment. The surge in price is attributed to a combination of factors, including rising institutional interest, increased network activity, and anticipation surrounding Ethereum’s upcoming upgrades.
One key driver of Ethereum’s recent rally is the surge in daily transaction activity, which has reached levels not seen since 2021. This uptick in transactions reflects growing network usage and heightened market participation, indicating strong demand for ETH across various sectors such as DeFi, NFTs, and smart contract applications. The increased on-chain activity is likely contributing to the current price rally, supporting Ethereum’s upward momentum and short-term bullish outlook.
As Ethereum approaches critical price levels, traders are closely monitoring key resistance levels and liquidity pressure points. The latest exchange liquidation map reveals clusters of both long and short liquidation levels across major exchanges like Binance, OKX, and Bybit. The market is at a pivotal juncture, with traders on high alert for potential liquidity sweeps that could trigger sharp volatility in either direction.
The map highlights a significant short liquidation cluster near Ethereum’s all-time high of $4,870, where over $2 billion in shorts are positioned. A breakout to this level could lead to a massive short squeeze, pushing ETH into price discovery territory. Based on Fibonacci extensions from the previous ATH-to-low cycle, potential price targets include $5,250-$5,300 as an initial target, with momentum potentially stretching to $5,800 if FOMO buying accelerates.
In conclusion, Ethereum’s bullish momentum and increasing market optimism are setting the stage for further price gains. As traders assess the potential for ETH to surge higher before facing a major correction, all eyes are on key resistance levels and liquidity pressure points. With institutional interest on the rise and network activity reaching new highs, Ethereum’s price trajectory in the coming days will be closely watched by both retail and institutional participants.