Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Crypto traders betting against a price rise for the second largest cryptocurrency by market cap, Ethereum (ETH) just got hit hard. In the last 24 hours alone, Ethereum short liquidations rose to $111.27 million, significantly outpacing Bitcoin’s $34.71 million, a staggering 370% higher indicating that ETH bears were caught flat-footed.
Ethereum rose sharply to a high of $3843 in the early Thursday session, with bulls building on an earlier rebound in Wednesday session from a low of $3563.
The intraday surge from $3647 to $3843 caught bearish traders off guard, resulting in significant liquidations.
CoinGlass highlighted the wipeout in a post on X, writing, "Haven't seen this many ETH shorts wiped out in just an hour in a long while."
Short liquidations occur when traders who bet on falling prices are forced to close positions as prices climb, leading to even more upward momentum—a classic short squeeze.
Around the time of writing, ETH was up 6.94% in the last 24 hours to $3818, with liquidations sparking a wave of forced buybacks from overleveraged short positions.
Ethereum surpasses SOL, BTC
Not only did ETH flip BTC in 24 hour liquidations, the second largest cryptocurrency is also gaining an edge in other market measures.
According to Glassnode, the SOL/ETH hot capital ratio is clearly declining, having reached a year-to-date low of 0.045. On July 29, ETH experienced record short-term inflows, while SOL reached a local high - but both are presently slowing. The cooldown for SOL is sharper, indicating a decreasing but noticeable ETH-led rotation.
The cooldown is sharper for SOL, signaling a fading but notable ETH-led rotation.
Over the last seven days, realized cap growth has slowed. BTC dropped from 6.66% to 5.46%, while SOL fell from 6.34% to 4.84%. ETH has shown some resilience, climbing from 5.32% to 6.41%.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team