A strong price surge across the cryptocurrency market, led by Ether (ETH) with an increase of over 20%, has resulted in over $750 million in short positions being liquidated in just the past 24 hours — the highest number since 2023 for bearish trend transactions.

According to data from the derivative analysis platform CoinGlass, over 84% of total liquidated positions came from short orders, as major altcoins collectively surged 10%–20% in just a few hours, starting from late Thursday.

ETH Leads the Rally, Altcoins Ignite

Ether has surged strongly, surpassing the $2,000 mark for the first time since early March. At the same time, Dogecoin (DOGE) and Cardano (ADA) rose over 10%, driven by optimistic market sentiment and momentum trading activity. Other major coins like Solana (SOL), BNB, and XRP also recorded gains of at least 7%.

Why Are Short Positions Being Liquidated en Masse?

Liquidation occurs when an exchange is forced to close a trader's leveraged position because the account no longer has enough margin to maintain the order. This usually happens when the asset's price moves against the trader's expectations, causing the account to lack sufficient collateral.

When large-scale liquidations occur, it may be a sign of an extreme market state — either panic selling or massive buying. Such liquidation "storms" often lead to a reversal in prices, as market sentiment at this point is easily swayed by excessive emotions.

Bitcoin Surpasses $100,000, Market Sentiment Soars

This price increase occurs against the backdrop of Bitcoin surpassing the $100,000 mark on Thursday night, marking a historic milestone for the market. Investor sentiment is strongly boosted by news of a trade agreement between the U.S. and the U.K., contributing to a broad wave of buying.

This is the largest liquidation since the weekend of March, when Bitcoin reached $93,000 and caused bears to lose over $550 million in just a few days.

ETH Makes a Strong Comeback Thanks to Pectra Upgrade

In April, a similar surge of ETH and DOGE also wiped out over $500 million in short positions. However, the current rally has far exceeded in scale, reflecting investors' risk appetite increasing once again — while also showing that a large amount of previous short orders has created a "trap" that is easily squeezable.

According to CoinGlass, Binance and OKX recorded a total of over $500 million in liquidations, with ETH accounting for $310 million and Bitcoin leading with $375 million from futures contracts.

ETH has been trading in a narrow range for several weeks, affected by a decline in interest from institutional and retail investors. However, Ethereum's recent Pectra upgrade may be creating new momentum, causing many traders to start regaining confidence in the world's second-largest cryptocurrency.