Unprecedented $400M liquidations hit Ethereum bets amid growing expectations for a $10K ETH surge.

Ethereum’s surge past $4,800 triggered nearly $400 million in liquidations, highlighting the heavily leveraged positions ahead of the move.

Within the last 24 hours, Ethereum liquidations reached approximately $388 million—the largest across all crypto assets—while the overall market saw $769 million wiped out, forcing over 183,000 traders to exit positions. The biggest single liquidation was a $10 million ETH swap on OKX, a notable figure given ETH’s usual second-place status behind Bitcoin in leveraged trades.

These liquidations demonstrate the precarious nature of margin trading in crypto. When markets move sharply, leveraged positions are forcibly closed by exchanges to manage risk. This can result in a cleansing effect, resetting the market for fresh upward momentum.

The sharp price jump followed Federal Reserve Chair Jerome Powell’s comments suggesting possible rate cuts in September, driving Ether up nearly 15% to a new high of $4,885. Bitcoin, meanwhile, rose about 4% to $113,000, and the broader CoinDesk 20 Index gained 9%.

Experts say this rally goes beyond macroeconomic factors. Institutional inflows and corporate treasury investments are fueling demand, leading some to view Ethereum as Wall Street’s preferred blockchain.

“Ether hitting a new record price reflects strong investor interest beyond Bitcoin,” said Samir Kerbage, CIO at Hashdex. “We anticipate ETH surpassing $10,000 as stablecoin payment infrastructure develops in the U.S.”

Once seen as ambitious, the $10,000 milestone is now increasingly considered achievable, as Ethereum strengthens its position as the foundation for smart contracts, tokenization, and stablecoins. Year-to-date, ETH is up roughly 45%.