Ethereum Price Forecast: ETH jumps 18%, sparks over $1 billion in liquidations

Ethereum price today: $2,250

• Ethereum has rallied roughly 18%, triggering over $1.11 billion in liquidations.
• The rally follows the US Treasury doubling its debt buyback operations, coupled with President Trump's bullish crypto remarks.
• ETH has broken above all its immediate EMA barriers.

Ethereum (ETH) has gained nearly 18% on Wednesday, sparking heavy short liquidations after weeks of sideways price action.

The top altcoin saw over $1.11 billion in liquidations over the past 24 hours, driven by $1.02 billion in short liquidations, according to Coinglass data. Nearly half of that figure came in under an hour.

The move aligns with that of the broader crypto market, where short liquidations have climbed above $2.49 billion, the highest recorded single-day short squeeze event in crypto market history.

The liquidations came after the US Treasury decided to double buyback operations for long-dated bonds to $4 billion, prompting a positive sentiment across risk assets.

Additionally, President Donald Trump noted in a meeting with tech executives at the White House that the US is ensuring it remains the "undisputed" leader in crypto. He added that the government is considering buying "sizable" amounts of Bitcoin (BTC) and other cryptocurrencies.

The President also referenced the Clarity Act, stating that Congress needs to pass the bill to keep the US ahead of China in crypto.

ETH on-chain cost basis could limit upside

After nearly a month of quietness, when ETH ranged roughly between $1,800 and $1,950, the top altcoin briefly flipped $2,300, its Realized Price, which represents investors' average on-chain cost basis.

Historically, this level has often acted as key resistance, as a few investors exert selling pressure as they near break-even prices after a long period of bearish conditions.

ETH often sees notable rallies after it overcomes this supply barrier and holds the Realized Price as support.

Meanwhile, markets often face a brief correction after such intense short squeezes. Historically, demand often cools after short sellers finish covering their positions. In addition, profit-taking from long investors looking to lock in gains can weigh on the market.

In such cases, strong spot demand across crypto-native venues and exchange-traded funds (ETFs) is needed to sustain bullish pressure.

Ethereum technical analysis: ETH surges above key EMAs, eyes $2,431

On the daily chart, ETH is extending a strong bullish phase after breaking well above its key Exponential Moving Averages (EMAs). The 20-, 50-, and 100-day EMAs at $1,886 to $1,925 sit comfortably below price, suggesting a firmly supported uptrend.

Momentum is stretched, with the 14-day Relative Strength Index (RSI) near 82 and the Stochastic Oscillator (Stoch) above 87, suggesting overbought conditions that could slow the advance even as the broader bias remains upward.

On the downside, initial demand appears around $2,163, ahead of a firmer support cluster between the horizontal level at $1,961 and the EMA band in the $1,925 - $1,886 area, which should underpin corrective pullbacks. Deeper supports emerge at $1,809, $1,701 and $1,507 if profit-taking accelerates.

On the topside, the next notable resistance is the horizontal barrier at $2,431, where buyers may face a first serious test of the rally.

(The technical analysis of this story was written with the help of an AI tool. Know more.)