ETH short-term surge of 1.02%: DeFi liquidation concentration triggers and on-chain capital inflow resonance

Between 01:45 and 02:00 (UTC) on May 4, 2026, ETH prices experienced a significant anomaly, with a return of +1.02%, a price range of 2326.7 - 2353.94 USDT, and an amplitude of 1.17%. Market volatility intensified, on-chain trading activity continued to rise, and the rapid price increase in a short period drew market attention.

The core driver of this anomaly was the concentrated triggering of DeFi liquidation activities. RedStone Atom Oracle achieved zero-latency DeFi liquidation and native MEV capture. ETH price fluctuations in early May 2026 triggered a large number of on-chain liquidations, which were completed in a short time, directly causing the price anomaly within the 01:45–02:00 window. Meanwhile, this mechanism directly distributed liquidation profits to the protocol, reducing external arbitrage capture and indirectly improving on-chain capital efficiency.

Additionally, the sustained increase in on-chain activity formed a price support. In early May 2026, ETH active addresses’ 100-day moving average surpassed 587,000, reaching a new all-time high. In Q4 2025, stablecoin transfer volume reached $8 trillion, with ETH accounting for about 65% in RWA settlement, indicating extremely strong capital liquidity. The frequency of large on-chain transactions increased, some funds flowed from exchanges into on-chain protocols, pushing short-term prices higher. Whale behavior and on-chain capital inflows created a linked effect.

Short-term volatility risks should be monitored. Open interest in ETH contracts declined to $4.99 billion, below the average of $5.31 billion, reflecting partial capital withdrawal or cautious stance. ETF experienced a net outflow of $80k, indicating short-term caution among institutional investors. In extreme market conditions, concentrated liquidation activities could intensify price fluctuations, and on-chain transaction fees may temporarily rise. Users should pay attention to changes in on-chain activity and capital flows, and remain alert to short-term pullback risks.

ETH2.62%
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