Ether Shatters Shorts, Surges 8.3% in Record-Breaking Rally

Ethereum's price jumped by as much as 8.3% in a significant move, its biggest in three weeks. This surge has left traders who bet against it with substantial losses, totaling over $255 million. The rally has been attributed to the wiping out of shorts on Ether, which is unusual since Bitcoin usually sees bigger leverage wipeouts.

The U.S. markets bounced around after a release of economic data and a decline in oil prices, but it was Ethereum's price that saw the most significant movement. The price of Ether perpetual futures showed negative funding rates, indicating that short-siders on Ether had to pay for their positions while those on the other side were being paid to take the position.

The rebound in Ethereum's price comes after crypto began recovering from the August 19 liquidation event, one of the biggest leverage blowups in recent years. Bitcoin has also been rising, with its price moving by some 20% over the past month and putting it back above $80,000. However, despite this recovery, Bitcoin is still down close to 10% this year.

Additionally, Bitcoin ETF flows have picked up, with the iShares Bitcoin Trust (NASDAQ: IBIT) bringing in about $3.5 billion in net inflows over the past month. This development has been accompanied by concerns that the correlation between Bitcoin and technology stocks remains high.