Ethereum Price Flashing More Breakout Signals after US Fed Decision and Ripple’s SEC Win Sparks $300M Liquidations

Ethereum price surged by 5% on Wednesday, reaching $2,050 for the first time in ten days. With mutiple news catalysts alligning with massive short liquidations, how high can ETH prices go?

Ethereum (ETH) retakes $2,000 after 10-days amid Fed rate pause and SEC news on Ripple

Ethereum’s price surged by 5% on Wednesday, reaching $2,050 for the first time in ten days. This uptick coincided with the U.S. Federal Reserve’s recent policy decision and the conclusion of Ripple’s legal battle with the Securities and Exchange Commission (SEC), events that have significantly impacted the cryptocurrency market.

The Federal Reserve announced a pause in interest rate hikes, maintaining the current rates amid stable economic indicators. This decision has been perceived positively by investors, leading to increased confidence in riskier assets, including cryptocurrencies like Ethereum.

In a parallel development, Ripple’s CEO, Brad Garlinghouse, confirmed that the SEC has dropped its case against the company. The lawsuit, initiated in December 2020, alleged that Ripple’s XRP token was an unregistered security. The dismissal of this case has been viewed as a significant win for the broader cryptocurrency industry, alleviating regulatory uncertainties that have previously hindered market growth.

More Bullish Signals Appear as ETH Short Traders Emerge Biggest Losers

Aside from the latest Federal Reserve decision and Ripple’s SEC victory boosting altcoin market demand, Ethereum has formed internal bullish catalysts. Over the past week, the Ethereum network successfully implemented two key upgrades: the Pectra Upgrade and the Hoodi Update.

These technical improvements have strengthened investor confidence, helping ETH surpass the $2,000 resistance level on Wednesday.

According Coinglass’ latest derivatives crytpocurrency market data suggest further upside potential.

According to the liquidation heatmap, Ethereum saw $86.58 million in total liquidations over the past 24 hours, with short traders suffering the most at $72.62 million. This accounted for a significant 25% of total market-wide liquidations, indicating a short squeeze that fueled ETH’s breakout.

With ETH short traders emerging as the biggest losers, it signals that short sellers are closing their positions at a rapid pace. This has two key implications. First, it suggests that bears are conceding the $2,000 resistance level, reducing downward pressure on ETH.

Second, as ETH advances above $2,050 and stabilizes at $2,067 at press time, many traders who previously placed short positions around key resistance levels have exited. With weaker resistance ahead, ETH could rise rapidly if positive macro sentiment surrounding the Fed’s rate pause persists.

Ethereum Price Forecast: Bulls Need $2,100 Breakout to Confirm Next Move

ETH price surged past $2,036, gaining 5.43% as bullish momentum accelerated following positive  macroeconomic swings and successful network updates. Ethereum price forecast indicators on the daily chart reveals that ETH is trading above the 20-day moving average, signaling a potential short-term bullish reversal. The recent price action also aligns with the VWAP level of $2,009, further validating the strength of this rebound. A decisive close above $2,100 could open the door for a continuation toward the next resistance level at $2,373, as indicated by the upper Keltner Channel boundary.

However, despite the bullish momentum, Ethereum remains under a looming “death cross” overhang, where the 50-day moving average trends below the 200-day moving average, signaling a long-term bearish risk. Additionally, while short-term resistance may have weakened due to the massive $72 million in ETH short liquidations recorded Wednesday, the broader trend remains uncertain. If ETH fails to break and hold above $2,100, a rejection could trigger a retest of lower support around $1,927, potentially extending losses toward $1,801.

For now, bulls need to establish control above $2,100 to confirm sustained upside potential. A breakout beyond this level could drive ETH into a new uptrend, while failure may see renewed selling pressure in the coming days.