Ethereum liquidations have soared, with over $400 million wiped from leveraged positions as the cryptocurrency pushes towards a major milestone. Ethereum’s dramatic surge past $4,800 caused an unprecedented wave of liquidations, highlighting the asset’s growing momentum amid market volatility.

Massive Position Shakeout Sparked by Ethereum’s Price Breakout

Ethereum’s recent rally triggered approximately $388 million worth of liquidations directly linked to the token within a 24-hour window, according to data from Coinglass. This represents the largest liquidation event across all digital assets during the period. In total, more than $769 million in positions were closed across crypto markets, impacting over 183,000 traders globally.

One of the most significant blows came from a single $10 million liquidation on an ETH swap position at OKX—an unusually large loss for Ethereum holders, which are typically overshadowed by similar Bitcoin trades.

These liquidations are a stark reminder of how quickly conditions can shift in crypto trading. When crowded trades involving high leverage turn against traders, exchanges are triggered to forcibly exit those positions, exacerbating market moves.

Understanding Liquidations in Highly Leveraged Crypto Markets

A sudden purge of long positions can cleanse the market, often paving the way for healthier rebounds. Conversely, when shorts are liquidated in clusters, assets can experience added upward momentum, acting as fuel for bullish runs.

This current liquidation wave coincides with Ethereum’s sharp 15% rise to a new all-time high of $4,885. The gains followed a positive macroeconomic signal from Federal Reserve Chair Jerome Powell, who hinted at potential interest rate cuts as soon as September. In comparison, Bitcoin posted a modest 4% lift to $113,000, while the broader CoinDesk 20 Index gained 9%.

Institutional Demand and the Push Toward $10,000 ETH

Analysts believe Ethereum’s rally isn’t purely driven by macro cues. There’s growing institutional participation and increasing use of Ethereum for enterprise-level purposes. As more treasuries diversify into ETH and real-world applications grow, the narrative surrounding Ethereum’s dominance intensifies.

“Ether’s new all-time high is a clear sign of investor demand beyond just bitcoin,” noted Samir Kerbage, Chief Investment Officer at Hashdex, in an email to CoinDesk. “I would expect ETH to surpass $10k once we start to see stablecoin solutions being implemented for payments within the U.S.”

The long-term projection of Ethereum hitting $10,000 is no longer seen as overly bullish. As the protocol becomes increasingly central to the infrastructure of stablecoins, asset tokenization, and smart contracts, investor confidence is building. So far this year, Ethereum’s price has recorded a notable 45% growth—strengthening the case for further gains.

Chart highlighting the recent surge in Ethereum liquidations following its price breakout above $4,800.

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With Ethereum advancing both in use case and institutional relevance, the push towards a five-digit valuation reflects not just speculative fervor but a broader shift in how crypto assets are positioned in the global financial system.