Why is Ethereum (ETH) price up today?

ETH price rebounds alongside Bitcoin and major altcoins as the US-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
ETHUSDT
rose on April 23, up 10% in the last 24 hours to trade at $1,795 amid increasing optimism over the de-escalation of the US-China tariff wars. Its daily trading volume has jumped by 67% to $26.6 billion, reinforcing the intensity of the demand-side activity.
ETH rallies in tandem with broader crypto market
The bullish sentiment was not exclusive to Ether, as crypto prices also rallied across the board, triggered by easing tensions over the US-China trade wars.
Bitcoin
BTCUSDT
, the market leader, is trading at $94,000, up 6.5% over the last 24 hours. Fourth-placed XRP
XRPUSDT
has gained more than 8% over the last day to trade just above $2.28. Solana
SOLUSDT
, Dogecoin
DOGEUSDT
, and Cardano (ADA) also posted significant gains among the top 10 cryptocurrencies.
On April 22, 2025, President Trump told reporters at the White House that US tariffs on Chinese goods "will come down substantially," while US Treasury Secretary Scott Bessent called the US-China tariff standoff "unsustainable," hinting at a potential resolution.
Reduced trade tensions often lead to increased investor confidence in riskier assets, as global economic stability encourages capital flow into cryptocurrencies.
“Macro risks remain, but one critical overhang appears to be cleared,” said trading firm QCP Capital in response to Trump’s supposed policy shift, adding:
“Trump is signaling no intention to replace Fed Chair Powell for now. The reassurance has prompted a modest pullback in long-end yields, helping reduce a key tail risk.”
$110M in short ETH positions liquidated
Ether’s bullishness on April 23 is accompanied by significant liquidations in the derivatives market, signaling strong upward pressure.
Over $109 million worth of short ETH positions have been liquidated over the last 24 hours, compared to $22 million in long liquidations.
Bearish traders’ positions are forcibly closed when short positions are liquidated.
The scale of these liquidations mirrors the March 19 liquidation event, when a total of $72.29 million in short ETH positions were wiped 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.
Ether’s open interest (OI) has jumped by 16% from $18.87 billion to $21.92 billion over the last 24 hours, indicating increased trading activity in the derivatives market.
Positive funding rates in ETH perpetual futures markets are also a bullish sign. Funding rates represent the periodic payments exchanged between long and short-position holders. This metric has increased from -0.0018% on April 21 to $0.007% at the time of writing.
Increasing OI and positive funding rates mean more capital is entering the market, which can boost the price increase as buying pressure builds up.
#ETH#
#Crypto Market Rebounds#