Ethereum has surged to its highest level in six weeks, climbing above $1,900 as improving macroeconomic conditions and a wave of short liquidations fueled renewed bullish momentum.
ETH briefly reached $1,940 during late Wednesday trading before holding above the $1,900 mark into Thursday, marking its strongest performance since early June.
Short Squeeze and Positive Inflation Data Lift ETH
CryptoQuant analyst Darkfost attributed Ethereum’s rally to encouraging U.S. inflation data, with both the Consumer Price Index (CPI) and Producer Price Index (PPI) coming in below expectations.
According to the analyst, ETH has gained nearly 10% over the past two days and is now up more than 25% from its June low near $1,500, suggesting the asset may be entering a meaningful shift in momentum.
However, stronger macroeconomic data was only part of the story. Darkfost noted that the rally was amplified by a significant wave of short liquidations on Binance, triggering one of the largest Ethereum short squeezes on the exchange since June.
Nearly $30 million in ETH futures positions were liquidated within roughly an hour, while data from CoinGlass showed the largest single liquidation during the past 24 hours was an ETH/USD position worth approximately $11.9 million on Binance.
Analysts Set Their Sights on $2,000
Market observers are now closely watching Ethereum’s next key resistance levels.
Arden House founder Alaoui Capital shared a liquidation heatmap indicating that $2,000 is the next major price level ETH appears poised to challenge.
Meanwhile, analyst Satoshi Flipper pointed out that Ethereum has broken above its long standing downtrend against Bitcoin, a technical development that could strengthen the outlook for the broader altcoin market.
Former BlackRock vice president and Milk Road host John Gillen echoed the bullish sentiment, saying Ethereum has finally “woken up.”
He identified $1,950, which aligns with the 100 day exponential moving average, as the next hurdle. A decisive move above that level could open the door to $2,000, followed by a potential rally toward $2,200.
Gillen also suggested Ethereum’s recent strength may reflect improving fundamentals for both the network and the asset itself.
Ethereum Leads a Quiet Crypto Market
While Ethereum extended its gains, the broader cryptocurrency market remained relatively subdued.
The total crypto market capitalization held steady at around $2.3 trillion. Bitcoin eased after briefly climbing above $65,000, while most major altcoins traded sideways.
XRP, Zcash, and Stellar posted modest gains, but Ethereum remained the standout performer as investors focused on its accelerating momentum.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
