Over 259 million USD 'burned' as Ethereum almost hits historic peak

Last Friday, Ethereum ($ETH ) surged nearly 15%, reaching 4,842 USD, just 1% away from its historic peak of 4,878 USD (11/2021). However, the second-largest cryptocurrency has yet to break its nearly 4-year-old record.

The shocking surge caused significant fluctuations in the derivatives market: 259 million USD worth of short ETH positions were liquidated in just 24 hours, along with an additional 80 million USD in long positions, bringing the total value of ETH liquidations to over 340 million USD—accounting for more than half of the 668 million USD in liquidations across the entire crypto market.

The upward momentum was triggered by signals from Fed Chair Jerome Powell, hinting at the possibility of interest rate cuts in the near future. This news led to an explosive rally in the altcoin market, bringing ETH close to its all-time high.

In addition to macro factors, Ethereum has also benefited from ETF inflows, purchases from corporate treasuries, and an increasingly favorable regulatory environment in the U.S. Experts believe these factors are creating natural deflationary pressure for ETH, reinforcing a long-term bullish foundation.

However, profit-taking selling pressure and cautious sentiment have caused ETH to lose momentum, falling back to around 4,773 USD. Analysts suggest that ETH is still 'accumulating energy' and may soon break out to officially surpass its record in a new growth cycle.

👉 The information above is for reference purposes only and is not investment advice. #anhbacong