Ethereum Sees $400M in Liquidations Amid $10K Price Targets
Ethereum Bets Face Major Liquidations as $10K Targets Emerge
Ethereum's recent surge past $4,800 led to significant market activity, triggering nearly $388 million in liquidations within a 24-hour period. According to Coinglass data, this represents the largest liquidation event across all crypto assets.
The broader market experienced $769 million in liquidations, impacting over 183,000 traders. A single Ethereum swap order on OKX, valued at $10 million, was notably large, surpassing typical liquidation sizes usually associated with Bitcoin.
Liquidations highlight the inherent risks in leveraged crypto trading. Exchanges automatically close positions when market movements threaten a trader's capital.
A surge in long liquidations can provide a market reset, potentially leading to a price rebound. Conversely, substantial short liquidations can fuel further upward momentum.
Factors Driving Ethereum's Rise
Ethereum's price jumped almost 15% to a record $4,885 after hints from Federal Reserve Chair Jerome Powell about possible rate cuts in September. Bitcoin saw a more modest 4% increase to $113,000, while the CoinDesk 20 Index rose by 9%.
Analysts attribute the rally to more than just macroeconomic factors. Increased institutional investment and treasury allocations are creating a favorable environment, leading some to believe Ethereum could become the preferred blockchain for Wall Street.
Samir Kerbage, chief investment officer at Hashdex, noted, "Ether’s new all-time high is a clear sign of investor demand beyond just bitcoin. I would expect ETH to surpass $10k once we start to see stablecoin solutions being implemented for payments within the U.S.”
$10,000 Ethereum: A Realistic Target?
The $10,000 price target, once seen as ambitious, is gaining traction as Ethereum solidifies its position as a key infrastructure for stablecoins, tokenization, and smart contracts. Ethereum's year-to-date gain currently stands at 45%.
As Ethereum adoption grows, security becomes paramount. Platforms like Codeum offer blockchain security audits and smart contract development services to ensure the safety and reliability of decentralized applications.