Ethereum Surges Past $4,100 Following Derivatives Stabilization, Can ETH Reclaim $4,500?
Ethereum has risen beyond the $4,100 level again, up 12% in the last 24 hours. This could be a turning moment after Friday's terrible flash
Quick overview
- Ethereum has surged over 12% in the last 24 hours, surpassing the $4,100 mark after a significant market downturn.
- The recovery is attributed to stabilizing derivatives markets and renewed confidence following recent volatility caused by external factors.
- Ethereum has shown resilience compared to other cryptocurrencies, maintaining a strong position with substantial institutional investment.
- Technical analysis suggests a potential rise towards $4,500, with possibilities of reaching $5,000 if key resistance levels are broken.
Ethereum ETH/USD has risen beyond the $4,100 level again, up 12% in the last 24 hours. This could be a turning moment after Friday’s terrible flash meltdown, which wiped out $3.82 billion in leveraged long bets. The recovery is happening as the derivatives markets calm down and confidence in the wider market slowly returns after the dip caused by Trump’s tariffs, which threw the whole cryptocurrency sector into a tailspin.
Technical analysts and market watchers are rethinking Ethereum’s short-term path after it bounced back from the $3,750 support level. Several indicators point to a possible rise toward the $4,500 resistance level. As institutional money continues to flow through established spot exchange-traded funds and options markets, this recovery represents a key moment for the second-largest cryptocurrency by market capitalization.
ETH Derivatives Markets Signal Return to Stability and Neutral Conditions
The most convincing proof that the market is getting back to normal comes from the perpetual futures markets. During the crisis, the annualized funding rate dropped to -14%, which was an unsustainable situation that showed severe short positioning and prompted liquidations. This big change in how money flows has now been fixed as market makers restore trust and traders rethink how much risk they are taking.
ETH monthly futures immediately recovered from the shock in less than two hours, reclaiming the minimum 5% premium needed for a neutral market structure. This quick return to normal shows that the recent liquidation cascade was caused by forced selling forces instead than a concerted pessimistic attitude. Options markets on Deribit have stayed very balanced. The put-to-call ratios show that there isn’t a lot of demand for bearish strategies, and weekend trading volumes have returned to normal levels. This is a clear sign that traders were surprised by Friday’s volatility instead of expecting a big drop.
Ethereum’s Strong Performance Highlights Institutional Strength
Ethereum has done much better than its cryptocurrency competitors during both the crash and the rebound that followed. Bitcoin dropped from about $121,560 to less than $103,000 and has subsequently risen to $115,585. Major altcoins, on the other hand, had much bigger drops. Solana fell 84%, Avalanche fell 70%, and Cardano fell 66%. Ethereum, on the other hand, has only recovered to 5% below its pre-crash values, while its competitors are still about 10% underwater.
This strength shows that Ethereum is still the altcoin that institutional investors like the most. The digital asset has $23.5 billion in spot exchange-traded funds and $15.5 billion in open interest on options markets. This structural support protects it from the extraordinary volatility that smaller-cap alternatives are experiencing. Even if competitors add more to their ecosystems, these network effects and institutional ties set Ethereum apart.
ETH/USD Technical Outlook Points to $4,500, With Potential Path Toward $5,000
Technical analysis shows that there are good signs for more upside. According to pseudonymous crypto researcher Darkfost, Ethereum may have hit a bottom at the $3,500 mark, which is the 200-day exponential moving average. This is what the analyst calls a “wave 4” bottom in Elliott Wave analysis. If the price can break through the 21-day and 50-day exponential moving averages, which are close to $4,250, it will be able to go toward the psychological level of $4,500 and maybe even higher.
Darkfost says that the relative strength index is still below 50, but he points to the past pattern where a recovery above this level has come before big rallies. Analysts think that if Ethereum can get beyond these technical problems, it might reach the $5,000 level, which is just above the all-time high of $4,946 set in August, in the next few weeks.
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