Key Highlights
- Ethereum surged past $2,100, touching a 4-week peak of $2,192 amid broader market strength
- Short liquidations exceeded $133 million within 24 hours, fueling a powerful squeeze
- Spot Ethereum ETFs attracted $169.4 million in fresh capital, signaling institutional interest
- Derivative open interest surged nearly 15% to 13.43M ETH, the strongest level since January 31
- Critical resistance zone lies at $2,150–$2,200; clearing it could push ETH toward $2,400 and potentially $2,750
Ethereum (ETH) has staged an impressive comeback this week, pushing above the $2,100 threshold and touching a 4-week high of $2,192 as the broader cryptocurrency market experienced a significant rebound.
The upward momentum gained traction following reports suggesting potential diplomatic negotiations between the U.S. and Iran, a development that boosted risk appetite across global markets.
Bitcoin spearheaded the crypto rally, breaking back above $73,000 for the first time since early February. Ethereum quickly followed suit, posting gains exceeding 11% over a 24-hour span.
ETH trading activity intensified dramatically, with volume climbing 24% and representing approximately 12% of the token’s total circulating market capitalization.
This price surge caught bearish traders off guard, resulting in massive liquidations. More than $133 million in short positions were eliminated within 24 hours, dwarfing the $21.5 million in long liquidations, based on CoinGlass analytics.
Total short liquidations reached their most elevated level since February 24, climbing to $430 million. Approximately $100 million of these liquidations were ETH-specific, highlighting a pronounced short squeeze effect.
Institutional Capital Makes a Comeback
Spot Ethereum ETFs registered impressive inflows of $169.4 million in a single trading session, according to Farside Investors data. This influx indicates that institutional investors actively accumulated positions during the rally.
Open interest across ETH derivatives markets expanded by nearly 15% to reach 13.43M ETH — marking the highest reading observed since January 31. This metric has increased by 1.2M ETH throughout the past two weeks.
While funding rates currently remain marginally negative, market observers suggest that a pivot toward positive rates would validate the return of bullish market sentiment.
Critical Price Levels Under Focus
On the daily timeframe, Ethereum has developed a double bottom formation. The pattern’s neckline rests at $2,200, representing a crucial psychological resistance barrier.
A decisive break above the $2,200 threshold could propel ETH toward $2,400, which corresponds with the 38.2% Fibonacci retracement level.
The Relative Strength Index currently reads 53, positioned above the neutral threshold, indicating strengthening momentum following oversold territory in preceding weeks.
The MACD indicator has generated a bullish crossover signal, while the Aroon Up indicator registered 92.86%, substantially above the bearish Aroon Down reading of 35.71%.
Ethereum’s realized price — representing the average cost basis of all on-chain holders — hovers around $2,300. Approaching this level may trigger selling pressure as investors seek to reach breakeven.
The nearest support level sits at $2,108, where current price action intersects with the 20-day exponential moving average. A breakdown below this point could expose $1,741 as the next support.
At press time, ETH was trading at $2,117, positioned just 1.1% beneath the 23.6% Fibonacci level at $2,142.
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