Ethereum Approaches Historical High, Over $259 Million Burned

Last Friday, Ethereum ($ETH) surged nearly 15% to $4,842, just 1% away from its historical high of $4,878 (November 2021). However, as the second largest cryptocurrency globally, Ethereum has yet to break its highest record in nearly four years.

The astonishing rise in Ethereum's price has shaken the derivatives market: within just 24 hours, $259 million in ETH short positions were liquidated, along with $80 million in long positions, bringing the total liquidation value of ETH to over $340 million, accounting for more than half of the total liquidation amount of $668 million in the entire cryptocurrency market.

This rise was triggered by signals from Federal Reserve Chairman Jerome Powell, which hinted at possible interest rate cuts in the near future. This news sparked a breakout in the entire altcoin market, bringing ETH's price close to its historical high.

In addition to macro factors, Ethereum has also benefited from ETF capital flows, corporate bond purchases, and an increasingly favorable regulatory environment in the United States. Experts say these factors are creating natural deflationary pressure for ETH, strengthening the foundation for its long-term price increase.

However, profit-taking pressure and cautious market sentiment have caused ETH to lose momentum, dropping to around $4,773. Analysts believe that ETH is still "building energy" and may soon breakout, officially surpassing its record in a new growth cycle.

👉 The above information is for reference only and does not constitute investment advice.