Ethereum price surge shocked the market with a 20% gain in just 24 hours, briefly pushing ETH to $2,234 — its highest point in over two months. The rally followed the successful deployment of the long-awaited Pectra upgrade and led to the liquidation of over $280 million in ETH short positions, according to CoinGlass.
This sudden move marked Ethereum’s best trading day since 2021.
Ethereum Price Surge Wipes Out Shorts
The Ethereum price surge began as ETH jumped from $1,900 to over $2,200 during early morning trading. The 26% two-week gain and over 50% monthly recovery helped Ethereum rebound from bear market lows near $1,400.
Data from CoinGlass shows short traders lost more than $280 million in a single day, as the price unexpectedly broke resistance. Many of these liquidations were triggered by leverage-based positions expecting ETH to stay below $2,000.
Traders and analysts alike now see ETH back in bullish territory, especially with open interest rising across major exchanges.
Pectra Upgrade Triggers Deflationary Shift
The Pectra upgrade played a critical role in the recent Ethereum price movement. According to Web3 manager Kas Abbe, Pectra has significantly changed Ethereum’s monetary dynamics.
Just hours after activation, Ethereum’s annual inflation rate dropped from 0.7% to -0.5%, meaning ETH is once again deflationary. The daily burn rate also doubled, reducing overall supply and fueling demand.
“This is why ETH pumped,” Abbe explained. “Ethereum has lagged behind this cycle due to weak demand and growing supply. If the burn rate continues to climb, that problem is solved.”
Ethereum Resistance Levels and Next Price Targets
As ETH now trades above $2,200, analysts are eyeing new Ethereum resistance levels. Technical trader “MMCrypto” predicts ETH could hit $3,700 in the coming weeks, especially if the token reclaims the upper line of the wedge pattern seen on the weekly chart.
Historically, Ethereum has shown similar bursts of momentum. In May 2024, it jumped 23% from $3,070 to $3,800 in just three days. In November, it surged nearly 30% from $2,400 to above $3,100.
If that pattern repeats, ETH could soon revisit $3,000 — and possibly break higher.
Ethereum Price Momentum Gains Strength
The latest Ethereum price rally reflects renewed interest from both institutional and retail investors. Ethereum’s ability to flip inflationary to deflationary, combined with strong technical setups, has put the altcoin back in the spotlight.
Increased network usage, reduced issuance, and growing ETH burning metrics support a continuation of the rally. Some traders now believe $3K ETH is likely in Q2 2025 — and possibly sooner if market conditions remain favorable.
