Ethereum experienced a sharp intraday rally on Friday, September 11th, climbing from $2,437 to a high of $2,667. The move liquidated $211 million in short positions throughout the day.
The surge followed the release of a CPI report showing inflation at a 3.4% annual pace. According to analyst Ali Martinez, the spike in stock futures ahead of the report triggered liquidations of overleveraged short positions that had accumulated below the $2,530 resistance level, a psychological barrier bulls have attempted to break since August 21st.
Despite the initial strength, Ethereum has since retreated below $2,500, failing to hold the breakout. Over the past 24 hours, the price action triggered approximately $315 million in combined long and short liquidations.
What Traders Are Watching
The $2,700–$2,800 price range represents significant resistance based on distribution analysis of when previous Ethereum holders last moved their holdings. Whale activity has picked up over recent days, though without a clear directional trend.
The failed breakout from the established trading range has raised questions about whether the move was designed to flush out liquidity rather than establish a sustained rally. A breakdown below the $2,380 range low would signal bearish dominance, according to technical analysis.
