Could ETH Be Eyeing a New All-Time High?

Ethereum’s recent price trajectory has caught the attention of traders and analysts, as the asset extends its bullish rally well into today. With the price currently hovering around $3,420, Ethereum has registered a daily gain of 7.7% and a weekly surge of more than 23%.

The momentum follows a decisive breakout above the $3,000 level earlier this week, sparking renewed optimism across the derivatives and spot markets.

The latest insights from the on-chain analytics platform CryptoQuant provide context for Ethereum’s price action, suggesting that activity on Binance is a major catalyst.

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Ethereum Short Liquidations Shift Market Dynamics

CryptoQuant contributor Darkfost notes that the recent uptick coincides with a structural shift in the derivatives market, particularly around short liquidations.

A deeper analysis of exchange flows and taker behavior further supports the case for sustained upward movement, with indicators suggesting that Ethereum may be positioning itself to revisit previous highs.

According to Darkfost, Ethereum’s current rally follows a prolonged five-month correction phase that began in December 2024. During this period, the market experienced a flush of long positions, especially on Binance, contributing to what he describes as a necessary “cleanup” in the derivatives space.

This recalibration helped reset speculative positioning and laid the groundwork for the recovery observed since late April. Now, the pattern has reversed. “Short liquidations are now dominating on Binance,” Darkfost observed, emphasizing how forced exits of bearish positions are reinforcing Ethereum’s upward price momentum.

Liquidation data shows multiple short squeezes in recent weeks, with volumes reaching $32 million and $35 million, respectively. This trend suggests that many traders are positioned counter to the prevailing market movement, adding fuel to the rally as they’re forced to close out positions.

Darkfost also highlighted that, if this pace of short liquidations continues, Ethereum may be poised to test its all-time high. He added that ongoing inflows into spot Ethereum ETFs and increasing adoption by institutions viewing ETH as a long-term asset could further support this potential breakout.

Taker Volume on Binance Hints at Bullish Continuation

In a separate post, CryptoQuant analyst Crazzyblockk pointed to taker-side activity on Binance as another critical signal. The ETH Taker Buy/Sell Ratio (7-day moving average) recently crossed the 1.00 threshold, signaling stronger buy-side pressure from market participants.

This shift was accompanied by a spike in price volatility, which reached 261.5, mirroring Ethereum’s latest price surge beyond $3,434.

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Crazzyblockk noted that this pattern, rising buy-side taker volume aligned with surging volatility, has historically preceded extended price rallies. The divergence between taker long and short volumes further underlines dominant bullish sentiment.

The analyst emphasized that tracking taker momentum on Binance may offer early signals for future market direction, as the Ethereum price appears highly responsive to activity on the platform.

Featured image created with DALL-E, Chart from TradingView