Ethereum's recent price movements are truly eye-catching; it seems this upward momentum has not stopped. Currently, ETH is hovering around $3420, having risen 7.7% in just one day, and over 23% in a week.
This sharp rise was ignited by breaking through $3000 at the beginning of this week, immediately lighting up market sentiment, with both the spot and derivatives markets heating up.
The liquidation of shorts has directly rewritten the market rhythm.
This surge is closely related to changes in the derivatives market, especially the liquidation of shorts.
Looking further at the trading flow and buying behavior data, it feels like ETH's recent surge still has potential. Many indicators are suggesting that Ethereum might be preparing to return to its previous highs.
It's important to note that this rebound actually started after experiencing a five-month adjustment that began in December 2024. During that time, long positions were severely piled up, especially on Binance, and the market was constantly looking for opportunities to clear them.
It seems that this 'clearing' was successful—cleaning out speculative positions has laid a solid foundation for the rebound that started at the end of April. Recently, the trend has completely reversed. Now, shorts are being liquidated one after another, which has directly given ETH stronger upward momentum.
Data also speaks volumes: in the past few weeks, the amounts liquidated from shorts were $32 million and $35 million respectively, indicating that a lot of people misjudged their short positions, and after being forced to liquidate, it actually accelerated the price rise.
If this round of short selling continues, ETH really has a chance to hit a historic high. Don't forget, funds for the spot Ethereum ETF are continually flowing in, and more institutions are treating ETH as a long-term asset, all of which are providing a bottom support for ETH's market.
The increase in order volume reveals ETH's strength.
Looking at Binance's trading data, the order volume is a crucial signal. The buy-sell order ratio for ETH (7-day average) has already surpassed 1.00, indicating a significant increase in buying pressure.
Moreover, this wave of buying is accompanied by a surge in volatility; the volatility index has reached 261.5, which aligns perfectly with ETH's latest spike to $3434.
Historically, an increase in buying order volume + amplified volatility = prices will continue to rise. The same rhythm applies now—long positions are significantly higher than short ones, indicating an overall bullish market.
So, if you want to anticipate the upcoming trends, it might be worth closely watching the buying behavior on Binance, as ETH is very sensitive to trading changes on the platform.
