Ethereum Shorts Wrecked: $259M Gone as Price Approaches ATH
This week, ETH came extremely close to surpassing its all-time high and the consequences for those who bet against it were severe. Approximately 259 million dollars worth of short positions were liquidated, alongside another 80 million in long positions. This sums up to over 340 million dollars in cryptocurrency liquidations within just 24 hours, with Ethereum itself accounting for more than half of that figure.
Fed Indicators Ignite Crypto Markets
The surge wasn’t coincidental. It was sparked by remarks from Fed Chair Jerome Powell that hinted at potential interest rate cuts. Traders reacted quickly. ETH soared nearly 15 percent following the announcement, momentarily exceeding 4,842 dollars. That’s just shy of its 2021 high of 4,878. The crypto market reacted swiftly, and the liquidations followed suit.
BREAKING
200 MILLION DOLLARS IN SHORT POSITIONS JUST GOT REKT IN ONE HOUR, INCLUDING 112 MILLION IN $ETH SHORTS ALONE.
BULLS JUST ANNIHILATED THE BEARS. THIS IS THE DEFINITION OF A SQUEEZE.
— DustyBC Crypto (@TheDustyBC) August 22, 2025
Liquidation Surge Takes Over Crypto Scene
This surge in liquidations didn’t only impact Ethereum. The wider market experienced over 668 million dollars in wiped out derivatives contracts. However, Ethereum was the primary catalyst. It’s uncommon to see ETH lead so decisively, but this week, it wasn’t merely trailing Bitcoin’s movements. It was establishing the trend.
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Price Approaches 2021 All-Time High, Then Retreats
For a brief moment, it seemed like Ethereum was poised to establish a new record. However, after temporarily exceeding its 2021 high, it retracted. At the time of this report, the price was around 4,773 dollars. It didn’t maintain the breakout, but it got sufficiently close to remind traders of the momentum ETH can achieve when macroeconomic conditions are favorable.
Significance Beyond Statistics
This isn’t merely about numbers. It’s about how much impact central bank rhetoric has on risk assets like cryptocurrencies. A single ambiguous remark about future monetary policy shifted the trading market dynamics and wiped out hundreds of millions in open positions. In the crypto world, responses to announcement often outweigh the underlying fundamentals. This week was a quintessential example.
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Future Trends to Monitor
While Ethereum didn’t entirely breach its barrier level level, it’s now positioned just beneath a threshold that could initiate another significant movement. Should it exceed the previous high, there’s a promising possibility of momentum building into the next quarter. Conversely, if it fails, anticipate a correction and increased market fluctuation as traders adjust their positions. With the Fed’s decisions looming and trading market sentiments fluctuating, no one’s easing up just yet.
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Key Takeaways
- Over $340 million in crypto asset liquidations occurred in 24 hours, with ETH shorts leading the charge.
- ETH momentarily reached above $4,842 in response to Fed indications regarding potential rate cuts.
- ETH’s rise accounted for over half of all digital currency liquidations, surpassing Bitcoin’s influence in the crypto market.
- After reaching a new high, ETH retreated to approximately $4,773 as momentum slowed.
- The market’s response highlights the significant impact macro signals have on crypto, particularly ETH.
The post Ethereum Shorts Crushed: $259M Lost as Price Nears ATH appeared first on 99Bitcoins.
