Ethereum High on Relief Rally, Gains 6% in 24 Hours
Ethereum rose 5.96% to $2,429.69 on Thursday, outperforming Bitcoin’s 3.61% gain, as a market-wide relief rally and a major short squeeze followed the U.S. midterm election results.
Market analysts attribute the movement to a post-election relief rally and short squeeze, as markets reassessed the impact of a Democratic sweep in Congress, triggering over $236 million in ETH liquidations (55.9% shorts).
Initial selling pressure followed the Democratic Party’s win in both chambers, raising fears that crypto-friendly legislation would be delayed.
As this uncertainty faded, a sharp rebound triggered cascading liquidations. Over two hours, traders liquidated about $236.47 million in Ethereum positions, with shorts accounting for 55.9%. Forced short closures added rapid buying pressure, amplifying the up move.
A derivative unwind, not just organic buying, accelerated the price surge. This indicates a sentiment shift from fear to cautious optimism.
Ethereum moved in lockstep with a recovering macro environment. The S&P 500 rose 1.47%, and crypto’s 24h correlation with the SPY ETF was a strong 0.87.
Concurrently, Ethereum options open interest rose 4.68% to $5.77 billion, with calls dominating 61% of positions, signalling bullish hedging or speculation. ETH benefited from a “risk-on” move across assets, with derivatives markets positioning for further upside.
The immediate trend hinges on ETH holding the $2,300–$2,350 support band. If it does, the next key resistance is the Fibonacci 127.2% extension level at $2,506.54. A catalyst to watch is U.S. spot Ethereum ETF flows, which saw $85.3 million in outflows on November 3; a reversal would support prices.
The short squeeze provided a boost, but the recovery needs confirmation from spot demand and stable ETF flows. A daily close above $2,450 would signal strength toward $2,500.
A macro-driven relief rally and a violent short squeeze fueled the rally. For the move to extend, ETH must consolidate above key support.
Meanwhile, the Moscow Exchange, Russia’s largest bourse, confirmed plans to launch a regulated cryptocurrency market on December 1, 2026. The initial offering will include Bitcoin (BTC), Ether (ETH), and Tether (USDT), with its National Clearing Centre handling clearing and settlement.
This is bullish for Ethereum, as it marks a significant step toward formal institutional and retail adoption in a major economy. It provides a regulated on-ramp for capital, potentially increasing demand and further legitimising ETH as a core crypto asset.
Data from major perpetual exchanges shows the top 100 traders by 7-day performance nearly doubled their aggregate long share to 27% in a 13.5-hour period.
Long notional rose by $435 million to $868 million, coinciding with a 4.4% ETH price rise to $2,428. Notably, the account split for ETH among these traders flipped from 31% to 59% long. XRP Holds Firm as Ripple Gains Institutional Custody Via BNY
