Ethereum Hits Six Week High As Shorts Get Liquidated

Ethereum reached a six week high of $1,940 this week. The price action held steady above the $1,900 level through Thursday morning. This move follows a strong two day rally where the asset gained nearly 10 percent in value. Market observers suggest the surge reflects a broader shift in momentum after a quiet period that saw prices bottom out near $1,500 in June.

The rally gained extra speed from a wave of liquidations on major exchanges. Data shows that nearly $30 million in short positions were wiped out on Binance in a single hour. When traders betting against the coin are forced to buy back their positions to cover losses, it often adds significant upward pressure to the market price.

Analysts point to cooling US inflation data as a primary catalyst for the buying interest. With both consumer and producer price figures coming in below expectations, investors appear more willing to take risks on assets like Ethereum. The coin has also started to show signs of strength against Bitcoin, which analysts suggest is a positive signal for the broader altcoin market.

Looking ahead, traders are watching the $1,950 level closely. This point aligns with the 100 day moving average. If Ethereum sustains momentum and breaks past $2,000, market experts suggest that $2,200 could become the next potential target for bulls.