Ethereum got here near breaking its all-time excessive this week, and the fallout was brutal for anybody betting in opposition to it. Round 259 million {dollars} in brief positions had been liquidated, together with one other 80 million in lengthy positions. That provides as much as greater than 340 million {dollars} in crypto liquidations in simply 24 hours. Ethereum alone made up greater than half of that complete.
Fed Trace Lights Up Crypto Markets
The rally wasn’t random. It adopted feedback from Fed Chair Jerome Powell suggesting that rate of interest cuts may very well be on the horizon. Merchants didn’t wait round. Ethereum surged nearly 15 % on the information and briefly climbed above 4,842 {dollars}. That’s inside touching distance of its 2021 peak of 4,878. The market moved quick, and so did the liquidations.
💥BREAKING
200 MILLION DOLLARS IN SHORTS JUST GOT REKT IN ONE HOUR INCLUDING 112 MILLION IN $ETH SHORTS ALONE.
BULLS JUST TORCHED THE BEARS. THIS IS WHAT A SQUEEZE LOOKS LIKE. 🔥📈 pic.twitter.com/hzInzCO0l9
— DustyBC Crypto (@TheDustyBC) August 22, 2025
Liquidation Frenzy Dominates Crypto Motion
This wave of liquidations didn’t simply hit Ethereum. The broader crypto market noticed greater than 668 million {dollars} in derivatives contracts worn out. However Ethereum was the principle driver. It’s uncommon to see ETH take the lead this aggressively, however this week, it wasn’t following Bitcoin’s strikes. It was setting the tempo.
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Worth Inches Above 2021 All-Time Excessive, Then Pulls Again
For a second, it regarded like Ethereum was able to set a brand new document. However after briefly pushing above its 2021 excessive, it slipped again down. On the time of reporting, the worth was hovering round 4,773 {dollars}. It didn’t maintain the breakout, nevertheless it bought shut sufficient to remind merchants what sort of momentum ETH can carry when macro elements align.
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Why This Issues Extra Than Simply Numbers
This isn’t solely in regards to the value. It’s about how a lot affect central financial institution language has on threat belongings like crypto. One imprecise remark about future coverage flipped the market and erased a whole lot of tens of millions in open positions. In crypto, reactions to headlines typically outweigh the basics. This week was a textbook case.
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What to Watch Subsequent
Ethereum didn’t fairly break by its ceiling, however it’s now sitting slightly below a stage that might set off one other main transfer. If it pushes previous the outdated excessive, there’s probability momentum may construct into the subsequent quarter. If not, count on a reset and extra volatility as merchants reposition. With the Fed in play and markets on edge, no one’s stress-free simply but.
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Key Takeaways
Over $340 million in crypto liquidations hit in 24 hours, with Ethereum shorts main the wipeout.
Ethereum briefly climbed above $4,842 following Fed indicators about doable price cuts.
ETH’s rally triggered over half of all crypto liquidations, outpacing Bitcoin’s market affect.
Regardless of touching a brand new excessive, Ethereum pulled again to round $4,773 as momentum cooled.
Market response reveals how a lot affect macro indicators have over crypto, particularly Ethereum.
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