There are few experimental studies on rotating detonation engines (RDEs) with liquid propellants. This study reveals the static thrust performance of a cylindrical RDE with ethanol and liquid nitrous oxide as propellants under atmospheric pressure. This RDE had an inner diameter of 40 mm, a maximum combustor length of 230 mm, a nozzle contraction ratio of 1.7, and a nozzle expansion ratio of 9.1. Nineteen experiments were conducted at total mass flow rates of 184–210 g/s, mixture ratios of 3.6–5.9, and combustion pressures of 0.35–0.46 MPa, resulting in a maximum detonation velocity of 1840 m/s (approximately 80% of the theoretical detonation velocity, 2251 m/s), maximum thrust at sea level of 294 N, and maximum specific impulse at sea level of 148 s. In addition, the maximum characteristic exhaust velocity, c*, was 1716 m/s, which was 99% of the theoretical value. The characteristic length of the combustion chamber at this time was 0.15 m. Since conventional rocket combustion requires 1.57 m to achieve the same c* efficiency, this study shows that detonation combustion can reduce the combustor size by 88%.