Ethereum is experiencing a powerful upward trend, leaving a trail of liquidated short positions and capturing the attention of investors. In just the past 24 hours, more than $100 million in Ethereum short positions were wiped out, according to data from CoinGlass. This liquidation frenzy comes as ETH hit a year-to-date high of $3,825 on Coinbase, pushing past the $3,800 mark for the first time since December 2024.
The recent rally has seen Ethereum soar over 50% in only two weeks, significantly outperforming many traditional assets. The second-largest cryptocurrency by market capitalization has now surpassed the value of corporate giants like Costco, Johnson & Johnson, and Palantir. As ETH eyes the $4,000 mark, traders and analysts are closely watching whether this bullish momentum can carry it even higher.
Whales Fuel the Ethereum Surge
Ethereum’s rally isn’t just a result of market speculation—it’s being driven by strong on-chain activity and increased accumulation from large holders. According to Lookonchain, a single whale recently used 50 million USDT to purchase approximately 13,500 ETH tokens. In another significant move, a newly created wallet withdrew 4,200 ETH—worth about $16 million—for staking, as reported by Onchain Lens.
This kind of accumulation suggests growing confidence among institutional and high-net-worth investors. The number of Ethereum holders has also reached record highs in recent weeks, underlining the broader bullish sentiment surrounding the asset.
Additionally, the ETH/BTC trading pair has reached 0.031 BTC, its highest level since January. This signals Ethereum’s growing strength relative to Bitcoin, and it’s giving ETH a chance to reclaim market share in the altcoin ecosystem.
Still Below Its All-Time High
Despite this explosive growth, Ethereum is still down about 23% from its all-time high of $4,878, set over three years ago. However, the momentum seen over the past month has revived optimism in the crypto market that Ethereum may finally be ready to challenge its previous record.
While the road to a new all-time high remains uncertain, analysts point out that key indicators—such as rising spot volume, increased staking activity, and the decline in available ETH on exchanges—are all suggesting continued upside potential.
Ethereum Competitor Tezos Makes a Comeback
Interestingly, Ethereum isn’t the only asset drawing attention this week. Tezos (XTZ), often referred to as an early “Ethereum killer,” has come back into focus after a prolonged period of low visibility. Over the past seven days, Tezos has rallied by an astonishing 73%, putting it on the verge of breaking back into the top 100 cryptocurrencies by market cap.
This sudden revival appears to be linked to growing interest in Tezos’ smart contract capabilities and improvements in its governance model. Although XTZ has largely flown under the radar in recent months, its recent surge suggests that traders may be re-evaluating its long-term potential.
What’s Fueling the Rally?
Several factors are aligning to create this bullish environment for Ethereum:
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ETF Momentum: Growing institutional interest in Ethereum spot ETFs is adding confidence to the market.
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DeFi Growth: The DeFi sector is experiencing renewed activity, with many protocols built directly on Ethereum.
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Technical Breakouts: ETH has broken through key resistance levels, opening up the path toward $4,000 and beyond.
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Shrinking Supply: With more ETH being staked and withdrawn from exchanges, liquid supply is drying up, creating upward pressure on price.
All of these factors are contributing to the renewed excitement surrounding ETH. Traders are increasingly betting that the top altcoin could continue its march toward new highs, particularly if broader market conditions remain favorable.
Market Outlook
With shorts getting wiped out and whales continuing to accumulate, the overall sentiment around Ethereum is leaning strongly bullish. However, as with any rally, caution remains essential. A sudden reversal or profit-taking wave could test investor conviction, especially as ETH approaches the psychologically important $4,000 level.
Nevertheless, Ethereum appears to be firmly in the driver’s seat for now, with whales backing its momentum and retail investors jumping back in. If current conditions persist, ETH may soon reclaim its position not just as the second-largest crypto asset—but potentially as a challenger to Bitcoin’s market dominance in specific use cases like smart contracts and decentralized applications.
As Ethereum continues this impressive climb, eyes will also remain on alternative layer-1 networks like Tezos, which are starting to catch up. Whether this signals a broader altcoin revival or just a temporary shift in sentiment remains to be seen.
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