In a significant development within the cryptocurrency markets, Ethereum’s price surged past $4,800 within the last 24 hours, setting a new record. This rally led to substantial liquidations across the cryptocurrencies, particularly impacting Ethereum 
$3,094-related transactions, which saw approximately $388 million in liquidations. The total amount liquidated in the broader market reached $769 million, affecting more than 183,000 investors who lost their positions.
Market Balance and Liquidations
These liquidations have once again brought to light the risks associated with leveraged trading in cryptocurrency markets. When price movements are unfavorable for investors, exchanges can automatically close positions to limit losses. In this recent wave, one notable event was the closure of a $10 million Ethereum position on the OKX platform.
Experts suggest that the substantial liquidation of long positions might pave the way for market rebalancing. However, mass closures of short positions could spark new price rallies.
Factors Behind Ethereum’s Latest Peak
Ethereum’s near 15% rise followed statements from U.S. Federal Reserve Chairman Jerome Powell, indicating potential interest rate cuts in September. During the same period, Bitcoin 
$91,081 rose by 4%, reaching $113,000, while the CoinDesk 20 Index increased by 9%.
Analysts are not solely attributing Ethereum’s ascent to macroeconomic developments. Institutional investors and treasury managers shifting towards Ethereum highlight the platform’s growing significance in the financial sector. This shift fuels speculation about Ethereum becoming a more preferred blockchain on Wall Street.
Expert Opinions and Future Outlook
Samir Kerbage, Investment Director at Hashdex, commented, “Ethereum’s new peak indicates investor demand extends beyond Bitcoin. We anticipate Ethereum surpassing $10,000 upon seeing stablecoin solutions adopted for payments in the U.S.”
The viewpoint that institutional backing and the adoption of Ethereum in the payment ecosystem could positively impact its price is prevalent. Although the $10,000 price target was once seen as optimistic, with growing application areas, it is now frequently mentioned.
Since the beginning of the year, Ethereum has gained 45% in value, marking significant growth for the cryptocurrency. The current market volatility underscores the need for caution in investor strategies.
Keeping a close eye on developments within the cryptocurrency markets and maintaining vigilance is advised for investors.
