The cryptocurrency market has experienced a notable rebound, with Ethereum (ETH) rallying back to around $1,550 on Tuesday, marking about a 10% gain within the past 24 hours.
This surge follows a dramatic decline to a two-year low of $1,410 earlier in the week, during which ETH suffered a staggering 27% crash in just 48 hours.
The rebound offers a much-needed reprieve for investors who bore the brunt of significant liquidations and losses during the turbulent period.
Ethereum’s latest price recovery comes amid intensified activity in derivatives markets, which were shaken by the rapid price drop.
According to data from Coinglass, approximately $370 million worth of leveraged ETH futures were liquidated over just two days, a testament to the scale of the downturn.
Santiment statistics further revealed that the sell-off was driven by short-term holders, who collectively endured losses amounting to $500 million on Monday alone.
The volatility in Ethereum’s performance has raised concerns about the resilience of the cryptocurrency, but analysts are cautiously optimistic about the possibility of further stabilization as market conditions improve.
Bitcoin briefly dipped below $75,000, only to rally back to approximately $80,000 late Monday, igniting a wave of recovery across major cryptocurrencies such as XRP (XRP-USD), Dogecoin (DOGE-USD), BNB (BNB-USD), and Cardano’s ADA (ADA-USD).
These tokens saw gains of up to 10%, helping the total crypto market capitalization return to levels not witnessed since early November.
The recovery was largely technical, as Monday’s market shakeout resulted in the liquidation of over $1.3 billion in crypto futures—predominantly affecting long positions. This purge of overleveraged traders cleared the way for a more stable rebound.
Over the same period, this rise exceeded rivals such as Solana (12% increase) and BNB Chain (16% increase).