Ethereum short liquidations surged after ETH nearly hit its all-time high, wiping out roughly $259 million in short positions and $80 million in expiring longs within 24 hours; the move was driven by a near-15% intraday rally following comments from Federal Reserve Chair Jerome Powell and heavy ETF and treasury flows.
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Over $259M in ETH short positions liquidated in 24 hours
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ETH briefly rose nearly 15% to about $4,842 before stalling below its $4,878 record.
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$340M total ETH liquidations in the day; crypto-wide derivatives liquidations exceeded $668M.
Ethereum short liquidations surged to $259M after ETH nearly hit its all-time high; learn what drove the move and what traders should watch next. Read now
Published: 2025-08-22 | Updated: 2025-08-22 | Author: COINOTAG
What caused the $259 million Ethereum short liquidations?
Ethereum short liquidations accelerated when ETH rallied nearly 15% after a signal from Federal Reserve Chair Jerome Powell that interest-rate cuts may be approaching. Rapid price appreciation squeezed leveraged short positions, triggering automated liquidations tracked by analytics providers such as CoinGlass and pushing daily ETH derivatives losses above $340 million.
How did ETH price move so close to its record high?
ETH popped to roughly $4,842 after the Fed signal, coming within about 1% of its all-time high of $4,878 reached on November 10, 2021. The intraday spike was amplified by ETF inflows and corporate treasury purchases, which analysts say have a deflationary effect on circulating supply.
Why did leveraged shorts suffer the biggest losses?
Leverage concentrates risk: when ETH surged quickly, margin requirements spiked and liquidation engines closed short positions to cover losses. Data from CoinGlass (reported as plain text) shows $259 million in short liquidations and an additional $80 million in long expirations in the same window, making ETH responsible for more than half of 24-hour crypto liquidations.
What market factors amplified the rally?
Front-loaded catalysts included: Powell’s hint at lower rates, which lifted risk assets; ETH ETF inflows and corporate treasury buys reducing available supply; and ongoing positive regulatory developments that investors perceive as favorable to Ethereum’s ecosystem. Analysts at Amberdata provided commentary on ETH’s ecosystem growth and derivatives behavior (plain text mention).
Frequently Asked Questions
How much in ETH liquidations occurred in the last 24 hours?
About $259 million in short positions were liquidated, with an additional $80 million in long expirations, totaling approximately $340 million in ETH-related liquidations during the 24-hour period.
Did ETH set a new all-time high?
No. ETH briefly traded near $4,842 before stalling below its previous record of $4,878 from November 10, 2021, ending the session around $4,773 at the time of reporting.
Are these liquidation events market-wide or ETH-specific?
While ETH accounted for over half of the day’s liquidations, the broader crypto market saw roughly $668 million in derivatives liquidations, indicating concentrated stress around the ETH move.
Key Takeaways
- Short squeeze impact: Rapid ETH gains triggered ~$259M in short liquidations and pushed total ETH liquidations to ~$340M in 24 hours.
- Near-ATH volatility: ETH climbed nearly 15% intraday to about $4,842 but failed to clear the $4,878 all-time high.
- Drivers to watch: Fed policy signals, ETF inflows, corporate buys, and regulatory updates remain the primary short-term catalysts for ETH volatility.
How to interpret a sudden spike in ETH liquidations
Understanding liquidation spikes helps risk-manage positions. The HowTo schema below offers a short, actionable framework for traders and analysts.
Conclusion
The recent surge in Ethereum short liquidations underscores ETH’s sensitivity to macro signals and concentrated flows such as ETF inflows and corporate acquisitions. While the token approached its 2021 high, it failed to break through, leaving traders cautious. Monitor Fed guidance, ETF activity, and derivatives metrics for the next directional clue.
