Ethereum came close to breaking its all-time high this week, and the fallout was brutal for anyone betting against it. Around 259 million dollars in short positions were liquidated, along with another 80 million in long positions. That adds up to more than 340 million dollars in crypto liquidations in just 24 hours. Ethereum alone made up more than half of that total.
Fed Hint Lights Up Crypto Markets
The rally wasn’t random. It followed comments from Fed Chair Jerome Powell suggesting that interest rate cuts could be on the horizon. Traders didn’t wait around. Ethereum surged almost 15 percent on the news and briefly climbed above 4,842 dollars. That’s within touching distance of its 2021 peak of 4,878. The market moved fast, 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 Action
This wave of liquidations didn’t just hit Ethereum. The broader crypto market saw more than 668 million dollars in derivatives contracts wiped out. But Ethereum was the main driver. It’s rare to see ETH take the lead this aggressively, but this week, it wasn’t following Bitcoin’s moves. It was setting the pace.
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Price Inches Above 2021 All-Time High, Then Pulls Back
For a moment, it looked like Ethereum was ready to set a new record. But after briefly pushing above its 2021 high, it slipped back down. At the time of reporting, the price was hovering around 4,773 dollars. It didn’t hold the breakout, but it got close enough to remind traders what kind of momentum ETH can carry when macro factors align.
Why This Matters More Than Just Numbers
This isn’t only about the price. It’s about how much influence central bank language has on risk assets like crypto. One vague comment about future policy flipped the market and erased hundreds of millions in open positions. In crypto, reactions to headlines often outweigh the fundamentals. This week was a textbook case.
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What to Watch Next
Ethereum didn’t quite break through its ceiling, but it’s now sitting just under a level that could trigger another major move. If it pushes past the old high, there’s a good chance momentum could build into the next quarter. If not, expect a reset and more volatility as traders reposition. With the Fed in play and markets on edge, nobody’s relaxing just yet.
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Key Takeaways
- Over $340 million in crypto liquidations hit in 24 hours, with Ethereum shorts leading the wipeout.
- Ethereum briefly climbed above $4,842 following Fed signals about possible rate cuts.
- ETH’s rally triggered over half of all crypto liquidations, outpacing Bitcoin’s market influence.
- Despite touching a new high, Ethereum pulled back to around $4,773 as momentum cooled.
- Market reaction shows how much influence macro signals have over crypto, especially Ethereum.
The post Ethereum Shorts Crushed: $259M Lost as Price Nears ATH appeared first on 99Bitcoins.
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