Ethereum (ETH) reached $4,000 for the first time in nearly nine months, causing a wave of short position liquidations. Over $24 million was liquidated in just one hour.
Breaking the $4,000 Barrier
Ethereum (ETH) broke the $4,000 threshold for the first time since December 7, 2024, resulting in over $24 million in liquidations of short positions. In total, $119 million in short positions were liquidated in the past 24 hours, highlighting a significant resurgence of interest in ETH. According to Binance data, ETH peaked at $4,012.
Shifting Market Sentiments
Following the recent liquidations, ETH's open interest remained at $26.65 billion, nearing a three-year high. In the past 24 hours, open interest rose by 6.8%. Currently, around 95% of traders are in profit, which alleviates selling pressure.
Revival of DeFi on Ethereum
The total value locked in Ethereum protocols has reached levels not seen since early 2022, surpassing $86 billion. The increasing demand for lending has fueled more ETH purchases. While the recent price increase remains below historical highs, it invigorates hopes for further expansion in DeFi.
With the recent rally, ETH is once again capturing the attention of traders and investors, driving not only its price growth but also the overall interest in the DeFi ecosystem.
