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Ethereum price has surged more than 7%, extending its recovery as buying momentum returns to the crypto market.
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Around $236.47 million in ETH positions were liquidated over two hours, with short positions accounting for $132.15 million.
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A short squeeze could accelerate the rally, but sustained spot buying will be needed to support further gains.
Ethereum price has staged a strong rebound, climbing more than 7%, reclaiming the $2,400 mark as buyers return to the market. The rally comes amid a broader recovery across cryptocurrencies following the initial volatility triggered by the US midterm election results. The key question now is whether Ethereum (ETH) can turn this sharp rebound into a sustained recovery.
Why Is Ethereum Price Rising Today?
Ethereum’s latest rally comes as the broader cryptocurrency market recovers from its initial reaction to the US midterm election results. Democrats’ victories in both chambers of Congress initially raised concerns about delays to crypto-friendly legislation, putting pressure on digital assets.
However, the selling pressure eased as markets reassessed the potential policy impact. Bitcoin also recovered from its earlier decline, helping improve sentiment across the crypto market. Ethereum followed the broader rebound, with its gains accelerating as bearish positions came under pressure.
Another factor is the changing derivatives positioning. As ETH moved higher, traders betting on further declines faced forced liquidations, adding buying pressure to an already recovering market.
$236 Million in ETH Liquidations: Short Sellers Face Pressure
Liquidation data shows that approximately $236.47 million in Ethereum positions were liquidated over a two-hour period. Short liquidations accounted for $132.15 million, representing 55.9% of the total. Long liquidations made up the remaining $104.33 million, or 44.1%.
The larger share of short liquidations suggests that bearish traders faced greater pressure during the rally. When short positions are forcibly closed, exchanges effectively buy back the underlying asset, potentially adding momentum to an ongoing price increase.
However, the sizeable liquidation of long positions also signals elevated volatility. The move is not a one-sided squeeze, and traders on both sides of the market have faced significant losses.
Ethereum Price Analysis: Can ETH Extend Rally Toward $2,800?
Ethereum price is trading near $2,434, attempting to recover after a pullback from its recent high near $2,800. ETH price tests support around $2,300–$2,350, an important area for maintaining its short-term recovery structure.
If buyers defend this zone, ETH could first move toward $2,500–$2,600, with a stronger breakout opening the way toward the major resistance near $2,800. However, a breakdown below $2,300 could expose the next support around $2,200–$2,250. The broader support zone remains near $1,850–$1,900. A sustained move above $2,600 would strengthen the bullish outlook.
Final Words
If ETH holds its recent gains and broader market conditions remain supportive, buyers could attempt another leg higher. A continued recovery in Bitcoin would also provide a favourable backdrop.
For now, traders will watch whether Ethereum can consolidate above its reclaimed levels rather than quickly reversing. The latest short squeeze has given bulls an advantage, but sustained buying is needed to establish a stronger recovery trend.
