Ethereum (ETH) has surpassed the $4,000 mark, a level not seen since December 2024, confirming predictions of a continued upward trend. In just one hour, short sellers experienced liquidations exceeding $24 million.
Ethereum (ETH) broke the long-awaited barrier of $4,000 for the first time since December 7, 2024, causing over $24M in short liquidations. ETH also led 24-hour liquidations, with $119M in short positions erased.
1. Despite the recent market sell-offs, the total value of outstanding ETH futures contracts is still high at $26.65 billion, close to its highest level in three years. Over the last day, open interest increased by approximately 6.8%, with a significant number of traders betting on ETH reaching prices above $3,850. 2. Even after the latest liquidations, ETH’s open interest has held steady at $26.65 billion, a figure approaching its three-year high. In the last 24 hours, open interest saw an increase of about 6.8%, indicating a build-up of long positions targeting prices above $3,850. 3. The value of outstanding ETH futures contracts, or open interest, has remained resilient at $26.65 billion following the recent market liquidations, sitting near a three-year high. A 6.8% jump in open interest over the past day suggests that many traders are taking long positions, anticipating ETH to surpass $3,850.
ETH is up over 62% in the past three months, with the biggest climb kicking off in July. The token rose to $4,001.13 on Gate.io, with nearly every transaction hovering around the $4,000 mark. BinancedataETH’s price momentarily exceeded $4,012.
On Hyperliquid, liquidations of short positions caused a shift in the position distribution. There are 29,307 traders with long positions on ETH, compared to just 14,332 traders holding short positions. The largest ETH short position on Hyperliquid is valued at a nominal amount of$339.16M, and was over $35M underwater during the latest price expansion.
ETH indicated a change in prevailing attitudes.
In the past weeks, ETH moved on a mix of peak spot demand from whales, along with tracking open interest in the derivatives market. This combination sparked a rapid price surge following a period of little to no movement. ETH also climbed to 0.033 BTC, outpacing the gains of Bitcoin. With this recent surge, ETH’s market dominance has rebounded to 12.1%, fueling optimism for an altcoin season.
The extremely rapid rally also meant market sentiment went through anomalies. Crowd money is extremely bullish, while smart money has turned bearish. Nevertheless, efforts to bet against ETH are a primary driver of its increasing price.
Given the current cost, more than 95% of investors are seeing gains, so there’s not much incentive to cash out. Large investors have essentially set a price floor, and it’s anticipated that ETH will continue its upward trend to a higher level, mirroring the blockchain’s practical applications.
According to Kaito’s data, the present ETH surge is occurring alongside the highestpositive sentimentOver the last year. The surge happened shortly after ETH fell to around $1,400, coinciding with large investors adjusting their positions at a reduced average price.
To reach the predicted short-term target of $5,000 and aim for a new record high, the current price surge must first overcome the $4,000 resistance level.
The surge in ETH’s price is giving DeFi a lift.
The total value locked (TVL) in Ethereum-based protocols has reached heights not observed since the beginning of 2022, exceeding $86 billion across different platforms. Lending protocols are currently more established, and the liquidation threshold for ETH positions has decreased to as low as $997 per ETH.
The increasing demand for lending also boosts ETH buying, leading to a bigger potential rally. Currently, buyers far surpass new weekly ETH production, with more tokens held closely in accumulation addresses. ETH is also staked or wrapped, more rarely leaving the ecosystem.
A significant price surge could signal ETH’s attempt to surpass its 2021 Decentralized Finance achievements. After the 2021 bull run, ETH has only managed to climb above $4,000 on eight separate occasions, subsequently falling back to a lower trading range. The latest upswing continues to fuel optimism for continued growth.
Do you want the brightest minds in crypto to see your project?Feature it in our next industry report, where data meets impact.
