• Ethereum’s climb to $2,800 triggered liquidations of short positions, contrasting with Bitcoin’s stable price.
• The growing gap between Ethereum and Bitcoin is fueled by geopolitical events and ETF inflows.

Ethereum [ETH] has recently garnered significant market attention by surging towards $2,800, leading to a wave of short position liquidations among traders.

However, Bitcoin has not followed Ethereum’s upward trajectory, introducing increased volatility into the cryptocurrency market.

This divergence has resulted in the formation of a new liquidation pool at $2,600, further increasing the uncertainty of current price movements.

ETH Price Rally: Short Liquidations and Critical Price Points

Ethereum’s price ascent to almost $2,800 caused substantial short position liquidations. Short interest had risen by over 40% within a week and by more than 500% since November 2024, revealing a strong bearish outlook from traders.

Should Ethereum fail to maintain its upward momentum, the $2,600 level is expected to act as a crucial support area.

This scenario could trigger additional liquidations and a period of price consolidation. Elevated short interest might intensify selling pressure if the price revisits this level.

Ethereum’s Divergence from Bitcoin

Ethereum’s price surge occurred while Bitcoin’s price remained steady, emphasizing a clear divergence between these two major cryptocurrencies.

Geopolitical uncertainties, including the Trump administration’s tariffs, have prompted investors to favor Bitcoin as a perceived safe-haven asset.

Ethereum, with its wider range of applications, is considered more susceptible to regulatory challenges. Moreover, Bitcoin ETFs have attracted over $40 billion in institutional investments, whereas Ethereum ETFs have experienced smaller inflows.

This investment pattern has contributed to Bitcoin’s growing market dominance and a decrease in Ethereum’s market share.

The Aggregated Liquidations Heatmap

The aggregated liquidations heatmap for ETH indicates significant liquidation clusters around the $2,800 price point, coinciding with Ethereum’s recent price increase.

As the price moved upwards, short positions were rapidly liquidated. Conversely, the $2,600 liquidation pool remains a vital support level to monitor.

Source: Alphractal

Key Technical Indicators Suggest Caution

Source: TradingView

Analyzing Ethereum’s daily price chart reveals a bearish inclination, with ETH currently trading at $2,670, reflecting a 2.73% decrease at the time of reporting. The Relative Strength Index (RSI) is at 39.71, suggesting potential buying interest could emerge if the current trend continues.

However, the On Balance Volume (OBV) figure of 25.81 million points to weak buying strength, indicating that selling pressure remains dominant.

Ethereum’s current consolidation around $2,670 indicates market uncertainty. Should the price break below this level, ETH might test the $2,600 liquidation pool. Conversely, a rebound would need a significant volume surge to overcome the $2,800 resistance.

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Source: ambcrypto.com