ETH tapped a six-week high of $1,940 in late trading on Wednesday and has held on to those gains into Thursday morning, where it remained above $1,900.

CryptoQuant analyst ‘Darkfost’ said on Thursday that the move was driven by positive inflation reports in the US, with CPI and PPI figures that came in well below expectations. ETH has posted nearly 10% gains over the past two consecutive days, he said.

“Since a low of around $1,500 in June, ETH appears to have entered a genuine shift in momentum, now showing a performance of over 25% for the period.”

Ether Short Squeeze Pumps Prices

The analyst added that the recent surge isn’t solely down to the strong macro data. “It also owes a great deal to the wave of short position liquidations that had been building up on Binance throughout the move.”

It was one of the largest “short squeezes” ETH has experienced on the exchange since June, with almost $30 million in futures wiped out in an hour or so. The largest single liquidation order over the past 24 hours happened on Binance with ETH/USDT valued at $11.9 million, according to Coinglass.

Arden House founder Alaoui Capital posted a heatmap showing that $2,000 is the level ETH “wants to test before anything else.” Meanwhile, analyst ‘Satoshi Flipper’ said that ETH has now broken out from its downtrend against Bitcoin, which is also bullish for altcoins.

“ETH just woke up,” said former BlackRock vice president and MilkRoad host John Gillen.

He added that bulls need to keep an eye on the $1,950 level at the 100-day exponential moving average, then $2,000. “Crack that and $2,200 comes into play, and then it could be off to the races,” he said.

“This summer just got interesting. Price may finally be reacting to strengthening fundamentals in Ethereum and in ETH the asset.”

Elsewhere on Crypto Markets

Total capitalization has remained flat on the day at $2.3 trillion as ETH is the only mover, up 3.2%

Bitcoin was cooling after its venture above $65,000, and most of the altcoins were flat. There were minor gains for XRP, Zcash, and Stellar, but it is Ethereum stealing the show at the moment.

Source: CryptoPotato