• Ethereum jumped 12% within 24 hours to regain $4,100 from the loss of $3.82 billion in flash crashes.
• Continued strength over $4,000 implies the possibility of a bullish surge, possibly taking ETH to $7,000–$8,000.
• Analysts reveal $4,500 resistance ahead, with $2.62 billion longs exposed and $9.5B shorts exposed.

Ethereum (ETH) has once again surged past the $4,100 level, marking a 12% rise in the past 24 hours. The rally occurred quickly off the sharp flash crash that happened on Friday, taking out almost $3.82 billion in levered long spec in the cryptocurrency market.

The rebound signals increased stability in the derivatives market as investors regain confidence after a rocky week. The overall crypto market suffered significant losses after Trump’s taxes triggered tremors across world markets. Ethereum’s return signals that the second-least valuable crypto remains strong despite the recent fluctuations.

Ethereum Holds Strong Above $4,000

Technical analysts are now reassessing Ethereum’s short-term trajectory as it bounced back from the $3,750 support. Several technical gauges are indicating ETH can continue towards the $4,500 resistance area with growing institutional buying through exchange-traded funds and options platforms.

As per CryptoPulse, Ethereum’s solid hold above $4,000 has created a new psychological base. The strong buying spot that investors are looking towards to derive a major upswing in the sessions to follow is the firm level of support.

Market observers project that should the present bullish cycle be maintained, Ethereum will ultimately surge towards the $7,000–$8,000 level. This future potential rises to strong exuberance among long-term investors and digital currency holders expecting future profits to be enormous.

Shorts Worth $9.5 Billion Could Trigger Breakout.

Crypto analyst Crypto Tony highlighted the existing market tension, explaining that the 20% decline in Ethereum might liquidate long positions worth $2.62 billion. On the other hand, the 20% increase might initiate almost $9.5 billion in short liquidations, initiating a hot breakout.

Such a significant long-short imbalance has defined a vital pivot point of Ethereum. There is consensus among analysts that the upkeep of support above $4,000 can lead to a strong bullish wave, indicating the direction the rest of the market will take.

Also Read | Solana Price Surge: Can It Hold $190 Support and Rise Further?

ETH Technical Outlook Points Toward $4,500 and Beyond

Ethereum can reach its “wave 4” bottom near $3,500, coalescing with the 200-day exponential moving average. A breakout over both the 21- and 50-day EMAs around $4,250 can present the way to the $4,500 psychological barrier.

The relative strength index is still in the basement but below 50, yet past rebounds above that level have led to massive rallies. Analysts suggest that breaking through current resistance could push ETH to $5,000, just ahead of its prior all-time high of $4,946 made in August.

Also Read | Ethereum Price Steady as Bulls Eye Breakout Toward $4,000 Target Zone