On April 18, 2020, Ethereum achieved a remarkable milestone that few could have predicted just weeks earlier. The second-largest cryptocurrency by market capitalization surged to $190, effectively erasing the entirety of the devastating “Black Thursday” crash that had sent shockwaves through the crypto market on March 12, 2020.
That fateful day in March saw Ethereum plunge from $194 to a low of $90 in just 24 hours — marking the asset’s second-worst daily performance in its history. But by mid-April, a powerful recovery rally had pushed ETH back to pre-crash levels, demonstrating the kind of resilience that has defined Ethereum throughout its existence.
TL;DR
- Ethereum hit $190 on April 18, fully recovering from the Black Thursday crash that had sent it to $90 on March 12
- ETH rallied 29.5% from its weekly low of $147 established on April 16
- Approximately $3 million worth of Ethereum short positions were liquidated on BitMEX during the surge
- Institutional investors funneled over $400 million into Grayscale’s crypto funds, boosting confidence
- Ethereum outperformed nearly every other multi-billion-dollar asset over the same timeframe
The Road to Recovery
The recovery was anything but gradual. After hitting a weekly low of $147 on April 16, Ethereum staged an aggressive three-day rally that saw the price climb 29.5% to touch $190 on April 18. The move was powered by a combination of factors that aligned to create significant buying pressure across the market.
According to data from Kraken’s daily market report for April 18, Ethereum posted a 7% gain over the previous 24 hours with $57 million in trading volume. Bitcoin, by comparison, gained 2.26% to trade at $7,241 with $96.9 million in volume. The total crypto market saw $178 million traded across all markets on Kraken that day.
For traders who had positioned themselves on the short side, the rally proved punishing. Data from Skew.com showed that approximately $3 million worth of Ethereum short contracts on BitMEX were liquidated as the price surged. This forced liquidation created a feedback loop, pushing the price even higher as shorts were squeezed.
Institutional Momentum Builds
One of the most significant catalysts behind Ethereum’s recovery was growing institutional interest. A report from Grayscale Investments released just days earlier revealed that institutional players had been investing heavily into both Bitcoin and Ethereum, despite the broader macroeconomic uncertainty caused by the COVID-19 pandemic.
Grayscale reported that over $400 million had flowed into its crypto funds, with a notable portion directed toward its Ethereum-focused products. This institutional validation provided a strong signal to the broader market that sophisticated investors viewed the March crash as a buying opportunity rather than a reason to exit.
Broader Market Context
Ethereum’s recovery was part of a broader crypto market rebound. At the time of the recovery, Bitcoin’s total market capitalization stood at approximately $133 billion, with BTC trading around $7,257 according to CoinMarketCap data. Ethereum’s market cap hovered near $20.67 billion.
Other major altcoins also participated in the rally. Tezos (XTZ) gained 8.96% to $2.31, Bitcoin Cash (BCH) rose 5.23% to $246, and Zcash (ZEC) climbed 7.57% to $41.90. The across-the-board gains suggested a market-wide shift in sentiment rather than an Ethereum-specific event.
Why This Matters
The complete recovery from Black Thursday was more than just a price milestone — it was a statement about Ethereum’s resilience and the maturing crypto market. The crash on March 12 had been triggered by a global liquidity crisis as COVID-19 fears sent investors fleeing from risk assets of all kinds. That Ethereum could rebound so quickly spoke to the underlying demand for decentralized finance and smart contract platforms.
The institutional inflows documented by Grayscale also marked an important inflection point. While retail investors had historically driven crypto market cycles, 2020 was beginning to show signs of a shift. Institutional capital was flowing into the space at a pace that would only accelerate in the months to come, setting the stage for the massive bull run that would define late 2020 and early 2021.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always conduct your own research before making investment decisions.
$90 to $190 in 5 weeks. black thursday eth was the buy of a lifetime and most people were too scared to touch it
buy of a lifetime yes but nobody talks about the people who got margin called at $100 and couldnt hold. easy to say in hindsight
r_thandel_ people getting margin called at $100 couldnt hold because the liquidation engine took their bags. survival IS a luxury in crypto
r_thandel_ people who got margin called at 100 had their collateral liquidated before they could even react. coinbase was down, binance was overloaded. survival was about infrastructure access not bravery
the margin call at $100 thing is real. survival is a luxury in crypto. the people who held through march 2020 deserved the 10x
$90 ETH was the generational buy but nobody had dry powder because everything was dumping simultaneously. cash on the sidelines is the real alpha
dry_powder_99 everything dumping at once is exactly why you keep stablecoins. the people who survived march 2020 were the ones with cash on the sidelines, not the ones all-in
$3M in shorts liquidated on bitmex during the surge. imagine being short eth at $147 lmao
being short ETH at $147 with grayscale accumulating $400M is the most painful position imaginable. those liquidations were deserved
29.5% rally in two days from the $147 low. The bounce was violent because DeFi liquidations had flushed out all the weak hands.
Ingrid F. the DeFi liquidation cascade on march 12 was what flushed ETH to 90. compound and maker oracles were front-running each other
Grayscale pulled in $400M institutional money while retail was panic selling. The smart money narrative is annoying but accurate here.
grayscale buying while retail panicked is the oldest playbook in finance. same thing happened in march 2020 equities
the $147 to $190 move in 48 hours is why you never short a full recovery. the bounce is always faster than the dump. black thursday v-shaped reversals are legendary
$90 ETH feels like a fever dream now. black thursday was the best thing that ever happened to anyone with dry powder
Jelena M, $90 ETH as a fever dream is accurate. i bought at $98 and was sweating for a week before the bounce confirmed
grayscale accumulated $400M while retail panic sold in march 2020. the same playbook runs every crash. this time its ETFs doing the buying
Luka B. grayscale was the smart money then, ETFs are the smart money now. every crash has a designated accumulator. the playbook hasnt changed, just the vehicle
the grayscale playbook is running again with the ETFs. institutional accumulation during retail capitulation is the oldest signal