Why is Ethereum (ETH) price up today? (2025)

Key takeaways:

• ETH price rebounds alongside Bitcoin and major altcoins as theUS-China tariff war de-escalates.

• Short liquidations in the ETH Futures market.

• Renewed enthusiasm among derivatives traders.

• Ether price technical breakout has a target of $2,100.

Ether (ETH) rose on April 23, up 10% in thelast 24 hours to trade at $1,795 amid increasing optimism over thede-escalation of the US-China tariff wars. Its daily trading volumehas jumped by 67% to $26.6 billion, reinforcing the intensity ofthe demand-side activity.

ETH/USDdaily chart. Source: Cointelegraph/TradingView

Let’s closely examine the factors behind Ether’s bullishnesstoday.

ETH rallies in tandem with broader crypto market

The bullish sentiment was not exclusive to Ether, ascrypto pricesalso rallied across the board, triggered by easing tensionsover the US-China trade wars.

Bitcoin (BTC), the market leader, is trading at$94,000, up 6.5% over the last 24 hours. Fourth-placed XRP(XRP) has gained more than 8%over the last day to trade just above $2.28. Solana(SOL), Dogecoin(DOGE), andCardano (ADA) also posted significantgains among the top 10 cryptocurrencies.

Performance of top-capcryptocurrencies: Source: CoinMarketCap

On April 22, 2025, President Trump toldreporters at the White House that US tariffs on Chinese goods "willcome down substantially," while US Treasury Secretary Scott Bessentcalled the US-China tariff standoff "unsustainable," hinting at apotential resolution.

Reduced trade tensions often lead to increased investorconfidence in riskier assets, as global economic stabilityencourages capital flow into cryptocurrencies.

“Macro risks remain, but one critical overhang appears to becleared,” said trading firm QCP Capital in response to Trump’ssupposed policy shift, adding:

“Trump is signaling no intention to replace Fed ChairPowell for now. The reassurance has prompted a modest pullback inlong-end yields, helping reduce a key tail risk.”

$110M in short ETH positions liquidated

Ether’sbullishness on April 23 is accompanied bysignificantliquidations in the derivatives market, signaling strong upwardpressure.

Over $109 million worth of short ETH positions have beenliquidated over the last 24 hours, compared to $22 million in longliquidations.

Bearish traders’ positions are forcibly closed when shortpositions are liquidated.

Total ETHliquidations. Source: CoinGlass

The scale of these liquidations mirrors the March 19 liquidationevent, when a total of $72.29 million in short ETH positions werewiped out. This accompanied a 13% rise in price from a low of$1,840 to a ten-day high of $2,020 on the same day.

Related: Ethereum Foundation shifts focus to user experience,layer-1 scaling

Ether’s open interest (OI) has jumped by 16% from $18.87 billion to$21.92 billion over the last 24 hours, indicating increased tradingactivity in the derivatives market.

Ether’s OIacross all exchanges. Source: CoinGlass

Positive funding rates in ETH perpetual futures markets are alsoa bullish sign. Funding rates represent the periodic paymentsexchanged between long and short-position holders. This metric hasincreased from -0.0018% on April 21 to $0.007% at the time ofwriting.

ETHfunding rates across all exchanges. Source: CoinGlass

Increasing OI and positive funding rates mean more capital isentering the market, which can boost the price increase as buyingpressure builds up.

ETH price must hold above $1.6K — Analyst

Ether’s price traded in a tight $200 range between April 9 andApril 22, as shown in the four-hour chart below. ETH’s 17% rallyover the last two days saw the altcoin finally break out of thisconsolidation on April 22.

A successful retest of the upper limit of this range at $1,700confirmed the breakout, and the price breached the 200-periodsimple moving average (SMA) at $1,751 during the early Asiantrading hours on April 23.

As such, the ETH trades above all the major moving averages inthe four-hour timeframe, reinforcing the intensity of the ongoingrecovery.

Now, the bulls are focused on the April 2 range high at $1,950and, thereafter, the $2,100 resistance level.

ETH/USDfour-hour chart. Source:Cointelegraph/TradingView

Conversely, the RSI is at 78, which shows that ETH is“overbought,” suggesting that a pullback might be in the cards asbuyer exhaustion sets in.

If this happens, ETH may drop back into the $1,500 and $1,700range, where it could trade for a few more days before establishingany directional bias.

For popular analyst Rekt Capital, Ether was required to hold thearea above $1,600 to sustain the upward momentum.

“Ethereum is holding the bottom of the light blue historicaldemand area as support, repeating history also by wicking brieflybelow it,” the analyst wrote in part of acaption accompanying Ether’s monthly chart.

Rekt Capital was referring to the area between $1,600 and$2,000, within which ETH price oscillated for over eight monthsbetween April 2023 and November 2023 beforerallying 126% to $4,093 in March 2024.

“Ethereum needs to keep holding here,” Rekt Capital said, addingthat if the price stability can be sustained, there is a chancethat the altcoin could stage a similar recovery as the one seen inearly 2024.

ETH/USDmonthly chart. Source: Rekt Capital

As Cointelegraph reported,Ether’s price still needs to overcome the 50-day SMA currentlysitting at $1,830 to clear the path toward $2,100.

This article does notcontain investment advice or recommendations. Every investment andtrading move involves risk, and readers should conduct their ownresearch when making a decision.

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