Ethereum’s price surged by 10% to $1,795 amid optimism over US-China tariff reductions. The crypto market rallied alongside Bitcoin and major altcoins, driven by reduced trade tensions. Significant short liquidations in ETH futures further bolstered upward pressure, while ETH’s price technicals suggest targets of $1,950 and $2,100.
Ethereum (ETH) experienced a notable price surge of 10% on April 23, reaching $1,795, following optimism surrounding the de-escalation of the US-China tariff wars. This uptick coincided with a substantial increase in trading volume, which rose by 67% to $26.6 billion, reflecting heightened demand in the market.
The bullish trend was part of a broader market rally, with Bitcoin (BTC) gaining 6.5% to trade at $94,000, and XRP increasing by over 8%. Positive sentiment spread across major cryptocurrencies like Solana (SOL), Dogecoin (DOGE), and Cardano (ADA), attributed to reduced trade tensions enhancing investor confidence in risk assets.
Statements from President Trump indicated a significant decrease in US tariffs on Chinese goods, which, alongside US Treasury Secretary Scott Bessent’s comments, suggested a resolution to ongoing trade disputes. This alleviation of macro risks has encouraged substantial capital flow into cryptocurrencies, improving their market valuation.
In the derivatives market, short liquidations amounted to over $109 million in ETH positions within 24 hours, amplifying upward pressure on prices. The forced closure of bearish traders’ positions played a crucial role, with ETH’s open interest rising 16% to $21.92 billion, signalling increased trading activity.
Positive funding rates in ETH perpetual futures markets also contributed to this bullish sentiment, rising from -0.0018% to 0.007%. This trend indicates heightened interest, as more capital enters the market, creating additional buying pressure to support price growth.
Technical indicators reveal that ETH has finally broken above a previous consolidation range, with a confirmed breakout at $1,751. Analysts focus on the $1,950 and $2,100 resistance levels for potential further gains. However, with the Relative Strength Index (RSI) at 78, ETH is deemed ‘overbought’, suggesting a possible pullback.
To maintain upward momentum, Ethereum must hold above critical support levels, particularly the $1,600 mark. Analysts stress the importance of this range, which has previously served as a historical demand area, in sustaining the ongoing price recovery.
