Ethereum Surges 31% Amidst Record Short Liquidations

Ethereum's price surged by a significant 31% in just one week, thanks to a massive spike in short liquidations. The Ethereum network saw a sharp increase in activity, with base fees rising by 189% and fees burnt increasing by 251%, marking a reversal of the two months of low activity experienced previously.

Short liquidations reached an astonishing 1,514% increase, averaging $131 million weekly. This substantial jump led to forced short covering, which in turn boosted trading volumes. The Binance funding rates have also turned positive, signaling renewed bullish leverage.

Deposit patterns revealed smaller inflows rather than large whale transfers, indicating fragmented selling pressure. However, the price rally is thought to reflect positioning shifts rather than fresh spot buying, with future moves dependent on whether spot demand catches up or funding cools down.