Key Takeaways:
- Ether (ETH) surged over 20%, leading a broad rally across major cryptocurrencies.
- More than $800 million in short positions were liquidated in just 24 hours — the largest single-day figure since 2023.
- Altcoins like ETH, ADA, DOGE, SOL and XRP rose between 7–20%.
- The rally was fueled by bullish sentiment, a U.S.-UK trade deal, and Ethereum’s Pectra upgrade.
A powerful crypto market rebound led by Ether (ETH) has caused more than $800 million in short liquidations in the last 24 hours — marking the most severe “short squeeze” since early 2023.
According to data from CoinGlass, over 84% of the total liquidations came from short sellers, as major altcoins surged between 10–20% in a matter of hours. This sharp price movement caught many bearish traders off guard and triggered widespread margin calls across major exchanges.
Ethereum Leads the Charge With 20% Surge
Ethereum’s native token Ethereum (ETH) was at the forefront of the rally, jumping over 20% and briefly reclaiming the $2,000 level for the first time since early March. This surge activated a cascade of forced liquidations, particularly among leveraged short positions.
Other top-tier altcoins followed suit:
- Dogecoin (DOGE): +12%
- Cardano (ADA): +13%
- Solana (SOL): +9%
- BNB: +8%
- XRP: +7%
The rally was driven by renewed risk-on sentiment, with Bitcoin (BTC) breaking above $100,000 earlier this week and global macro developments — including a new U.S.-UK trade agreement — boosting investor confidence.
What Are Short Liquidations?
Short liquidations occur when traders are forced to close leveraged short positions due to insufficient margin or collateral. These events often signal extreme market conditions and can trigger rapid price reversals, especially when large volumes of shorts are concentrated in a short period.
This recent wave of liquidations suggests that the market may be entering a new bullish phase, where bears are increasingly vulnerable to aggressive buying pressure.
Binance and OKX Account for Over $500 Million in Liquidations
Data shows that the majority of the losses occurred on Binance and OKX, two of the world’s largest cryptocurrency exchanges, which accounted for over $500 million in combined short liquidations.
Specific breakdown:
- Ether (ETH): $310 million
- Bitcoin futures: $375 million
In April, a similar move in ETH and DOGE wiped out $500 million in short positions, but this latest rally surpassed that amount, indicating growing risk appetite and a crowded short setup among retail and institutional traders.
Ethereum’s Pectra Upgrade Sparks New Interest
Ether’s sudden breakout came after weeks of sideways trading and declining institutional interest. However, the recent Ethereum Pectra upgrade appears to have reignited trader optimism, offering improved Layer 2 scalability and enhanced smart contract functionality.
“This upgrade could be the catalyst investors were waiting for,” said one crypto analyst. “We’re seeing renewed attention toward DeFi and staking activity on Ethereum.”
Market Outlook: Bull Run or Overbought Correction?
While the current rally is generating significant excitement, it also raises concerns about short-term overheating. Large-scale liquidation events often precede market corrections or consolidation phases, as prices may overshoot fair value before retracing.
Investors are advised to monitor key resistance levels and watch for signs of profit-taking or volume divergence in the coming days.
Conclusion
The explosive moves seen in ETH, ADA, DOGE, and other altcoins have sent shockwaves through the crypto market, triggering over $800 million in short liquidations — the highest since 2023. Fueled by macroeconomic optimism, technical upgrades, and growing risk appetite, this rally signals a potential shift in market dynamics.
As Bitcoin maintains its dominance above $100,000, all eyes remain on Ethereum’s ecosystem and broader altcoin season unfolding in Q2 2025.
