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Key takeaways:<\/p>\n
ETH price rebounds alongside Bitcoin and major altcoins as the US-China tariff war de-escalates.<\/p>\n<\/li>\n
Short liquidations in the ETH Futures market.<\/p>\n<\/li>\n
Renewed enthusiasm among derivatives traders.<\/p>\n<\/li>\n
Ether price technical breakout has a target of $2,100.<\/p>\n<\/li>\n<\/ul>\n
Ether (ETH<\/a>) rose on April 23, up 10% in the last 24 hours to trade at $1,795 amid increasing optimism over the de-escalation of the US-China tariff wars. Its daily trading volume has jumped by 67% to $26.6 billion, reinforcing the intensity of the demand-side activity.<\/p>\n Let’s closely examine the factors behind Ether’s bullishness today.<\/p>\n The bullish sentiment was not exclusive to Ether, as crypto prices also rallied<\/a> across the board, triggered by easing tensions over the US-China trade wars.<\/p>\n Bitcoin (BTC<\/a>), the market leader, is trading at $94,000, up 6.5% over the last 24 hours. Fourth-placed XRP (XRP<\/a>) has gained more than 8% over the last day to trade just above $2.28. Solana (SOL<\/a>), Dogecoin (DOGE<\/a>), and Cardano (ADA<\/a>) also posted significant gains among the top 10 cryptocurrencies.<\/p>\n On April 22, 2025, President Trump told<\/a> reporters at the White House that US tariffs on Chinese goods “will come down substantially,” while US Treasury Secretary Scott Bessent called the US-China tariff standoff “unsustainable,” hinting at a potential resolution.<\/p>\n Reduced trade tensions often lead to increased investor confidence in riskier assets, as global economic stability encourages capital flow into cryptocurrencies.<\/p>\n “Macro risks remain, but one critical overhang appears to be cleared,” said trading firm QCP Capital in response to Trump’s supposed policy shift, adding:<\/p>\n “Trump is signaling no intention to replace Fed Chair Powell for now. The reassurance has prompted a modest pullback in long-end yields, helping reduce a key tail risk.”<\/p><\/blockquote>\n Ether’s bullishness on April 23<\/a> is accompanied by significant liquidations<\/a> in the derivatives market, signaling strong upward pressure.<\/p>\n Over $109 million worth of short ETH positions have been liquidated over the last 24 hours, compared to $22 million in long liquidations.<\/p>\n Bearish traders’ positions are forcibly closed when short positions are liquidated.<\/p>\n The scale of these liquidations mirrors the March 19 liquidation event, when a total of $72.29 million in short ETH positions were wiped out. This accompanied a 13% rise in price from a low of $1,840 to a ten-day high of $2,020 on the same day.<\/p>\n Related: <\/strong><\/em>Ethereum Foundation shifts focus to user experience, layer-1 scaling<\/strong><\/em><\/a><\/p>\n Ether’s open interest<\/a> (OI) has jumped by 16% from $18.87 billion to $21.92 billion over the last 24 hours, indicating increased trading activity in the derivatives market. <\/p>\n Positive funding rates in ETH perpetual futures markets are also a bullish sign. Funding rates represent the periodic payments exchanged between long and short-position holders. This metric has increased from -0.0018% on April 21 to $0.007% at the time of writing.<\/p>\n Increasing OI and positive funding rates mean more capital is entering the market, which can boost the price increase as buying pressure builds up.<\/p>\n Ether’s price traded in a tight $200 range between April 9 and April 22, as shown in the four-hour chart below. ETH’s 17% rally over the last two days saw the altcoin finally break out of this consolidation on April 22. <\/p>\n A successful retest of the upper limit of this range at $1,700 confirmed the breakout, and the price breached the 200-period simple moving average (SMA) at $1,751 during the early Asian trading hours on April 23.<\/p>\n As such, the ETH trades above all the major moving averages in the four-hour timeframe, reinforcing the intensity of the ongoing recovery.<\/p>\n Now, the bulls are focused on the April 2 range high at $1,950 and, thereafter, the $2,100 resistance level.<\/p>\n Conversely, the RSI is at 78, which shows that ETH is “overbought,” suggesting that a pullback might be in the cards as buyer exhaustion sets in.<\/p>\n If this happens, ETH may drop back into the $1,500 and $1,700 range, where it could trade for a few more days before establishing any directional bias.<\/p>\n For popular analyst Rekt Capital, Ether was required to hold the area above $1,600 to sustain the upward momentum.<\/p>\n “Ethereum is holding the bottom of the light blue historical demand area as support, repeating history also by wicking briefly below it,” the analyst wrote<\/a> in part of a caption accompanying Ether’s monthly chart.<\/p>\n Rekt Capital was referring to the area between $1,600 and $2,000, within which ETH price oscillated for over eight months between April 2023 and November 2023 before rallying 126% to $4,093<\/a> in March 2024. <\/p>\n “Ethereum needs to keep holding here,” Rekt Capital said, adding that if the price stability can be sustained, there is a chance that the altcoin could stage a similar recovery as the one seen in early 2024.<\/p>\nETH rallies in tandem with broader crypto market<\/h2>\n
$110M in short ETH positions liquidated<\/h2>\n
ETH price must hold above $1.6K — Analyst<\/h2>\n