Current Ethereum Price: $2,250
- Ethereum has surged approximately 18%, resulting in liquidations surpassing $1.11 billion.
- This increase follows the US Treasury’s decision to double its debt buyback operations, alongside optimistic comments from President Trump regarding cryptocurrencies.
- ETH has successfully surpassed all immediate Exponential Moving Average (EMA) resistance levels.
On Wednesday, Ethereum (ETH) experienced an impressive 18% increase, instigating significant short liquidations after a period of stagnant price movement.
The leading altcoin witnessed over $1.11 billion in liquidations within the last 24 hours, predominantly fueled by $1.02 billion in short sell liquidations, according to Coinglass data. Almost half of this amount was liquidated in under 60 minutes.
This upward movement corresponds with the broader cryptocurrency landscape, where the total short liquidations exceeded $2.49 billion, marking the largest single-day short squeeze in the history of cryptocurrency markets.
This surge in liquidations followed the US Treasury’s announcement to double its bond buyback initiatives to $4 billion for long-dated bonds, enhancing positive sentiment around risk assets.
Furthermore, President Donald Trump expressed during a meeting with tech leaders at the White House that the US aims to retain its position as the “undisputed” leader in the cryptocurrency sector. He also mentioned that the government is contemplating acquiring “substantial” amounts of Bitcoin (BTC) and additional cryptocurrencies.
Trump also highlighted the importance of passing the Clarity Act in Congress to ensure that the US stays ahead of China in the crypto domain.
ETH’s On-Chain Cost Basis Could Curb Further Gains
After nearly a month of relative calm, during which ETH fluctuated between $1,800 and $1,950, the altcoin has briefly surpassed $2,300, reaching its Realized Price—the average cost basis on-chain for investors.
This price point has historically acted as a significant resistance level, as some investors tend to sell when approaching breakeven prices after extended bearish markets.
Ethereum often leads to notable price hikes once it surpasses this resistance and maintains the Realized Price as a support level.
However, markets frequently undergo brief corrections following intense short squeezes. Historically, buying interest tends to wane after short sellers cover their positions. Additionally, profit-taking by long investors seeking to secure gains may also pressure the market.
In such instances, robust demand from crypto-native platforms and exchange-traded funds (ETFs) is essential to sustain upward momentum.
Technical Analysis of Ethereum: ETH Climbs Above Essential EMAs, Eyes $2,431
On the daily chart, ETH is enjoying a robust bullish trend following its significant breakthrough above key Exponential Moving Averages (EMAs). The 20-, 50-, and 100-day EMAs, positioned between $1,886 and $1,925, remain comfortably below the current price, indicating a well-supported upward trend.
Market momentum is currently high, with the 14-day Relative Strength Index (RSI) around 82 and the Stochastic Oscillator (Stoch) exceeding 87, signaling overbought conditions that might slow progress even amidst a prevailing positive trend.
On the downside, initial support appears around $2,163, followed by a stronger support cluster at the horizontal level of $1,961 and the EMA range from $1,925 to $1,886, which should support any corrective pullbacks. Further supports lie at $1,809, $1,701, and $1,507 if profit-taking gains momentum.
On the upside, the next key resistance level is the horizontal barrier at $2,431, where buyers may confront their first significant challenge of the recent rally.
(This technical analysis was created utilizing an AI tool. Learn more.)