Ethereum (ETH) advanced approximately 4% in the last 24 hours, reclaiming the $2,400 level as global risk assets rallied following the Democratic Party's decisive victory in the U.S. midterm elections. The second-largest cryptocurrency traded around $2,415, its highest level since October 23, buoyed by improved market sentiment and a wave of liquidations across crypto derivatives.
The rally came after Democrats secured control of both the House of Representatives and the Senate, along with key gubernatorial races in Texas and Nevada. President Donald Trump indicated a willingness to cooperate with Democratic lawmakers, which helped ease concerns about prolonged political gridlock. According to The New York Times, Trump said he was "absolutely willing" to work with Democrats, suggesting that some legislative cooperation remains possible.
Vice President JD Vance attributed the Republican losses largely to public dissatisfaction with the Iran war, citing inflation concerns and the desire to end the conflict as decisive factors. These political developments prompted investors to reassess the outlook for government spending, inflation, and economic policy, contributing to a broader risk-on tone across markets.
Ethereum's advance triggered substantial liquidations in derivatives markets. CoinGlass data shows approximately $195.4 million in ETH positions were liquidated over the past day, with short positions accounting for $112.70 million. The forced closure of bearish bets typically requires buying back the underlying asset, adding upward pressure to prices.
On the daily chart, Ethereum broke above a descending resistance trendline that had been in place since October 2, as well as the $2,355 horizontal resistance level and several key exponential moving averages. This technical breakout suggests that buying momentum has strengthened following the recent downturn.
The cryptocurrency currently trades slightly above its 50-day EMA at $2,411. A successful retest of this level could reinforce confidence in the breakout and attract additional buyers. However, a drop below $2,411 would signal that the rally is losing steam. The 14-day Relative Strength Index (RSI) sits near 57, indicating that buyers have gained an edge without entering overbought territory.
Immediate resistance is seen at $2,548, with a move from $2,430 to that level representing a potential gain of about 4.9%. A confirmed breakout above $2,548 could open the door to $2,636 and eventually the $2,781 region. On the downside, the first significant support zone lies between $2,359 and $2,355, where the 20-day EMA aligns with horizontal support. A sustained break below this area could expose the 100-day EMA near $2,346 and the 200-day EMA at $2,323. Further weakness might bring $2,250 and $2,204 into play.
Ethereum's recovery also coincided with a broader cryptocurrency market rebound, as total digital asset market capitalization increased by roughly 3%. The token reclaimed its realized price, a closely watched on-chain metric, further supporting the bullish narrative.
This article is for informational purposes only and does not constitute financial advice.
