Ethereum Surges Past $2,400 as Strait of Hormuz Reopens

Ethereum's price has surged past $2,400 as global calm returns to the Strait of Hormuz, a key route for oil shipments. This announcement has eased fears of supply disruptions and triggered an increase in risk appetite among investors.

The reopening of the Strait of Hormuz has had a positive impact on the crypto market, with Ethereum's price climbing 5.62% in the last 24 hours. The token is now sitting near an important support level at $2,350, and its price movement will be closely watched by investors.

According to CoinMarketCap, over the past 24 hours, Ethereum has mirrored Bitcoin's stronger gain amid a broadly rising crypto market. Institutional demand for spot ETFs remains strong, with six consecutive days of net inflows nearing $300 million.

The derivatives short squeeze has also added fuel to the rally, with liquidations reaching $112.05 million and 75.8% shorts being forced out of the market. However, this buildup carries risks, and a 4-6% open interest drop could unleash $1.4–2 billion in forced sales.