Usman Salis
Ethereum (ETH) rockets 7% to its highest level since December 2021 as $207 million in short liquidations fuel the rally.
Ethereum hit $4,217 on Binance Saturday – its highest price in nearly three years. The surge came after ETH broke through $4,000 Friday for the first time since December 2024, triggering $207 million in short liquidations.
The breakout brought serious buying from institutions and retail traders. When shorts got liquidated, it created a domino effect pushing ETH to $4,217.
What's Driving ETH Price Higher
Analyst Miles Deutscher says these liquidations created an "on-chain wealth effect" – as ETH rises, holders rotate profits into smaller altcoins for bigger gains. This snowball effect can lift the entire crypto market.
Deutscher expects a three-stage rotation: ETH-led mini altcoin season, then Bitcoin push to $120,000-$140,000, finally back to ETH and alts for the cycle peak.
Michaël van de Poppe called the $4,217 move "wild" and warned buying here carries serious risk. He suggests Ethereum ecosystem projects might deliver better returns.
Ethereum (ETH) Price Technical Analysis
ETH jumped from $3,914 to $4,160 between Friday-Saturday. Two key breakouts drove the rally:
Friday 13:00 UTC: ETH smashed $4,000 on 646,459 ETH volume – nearly triple the daily average.
Saturday 05:00 UTC: Second surge hit $4,194 on 714,461 ETH volume. In one hour, ETH swung $42 from $4,157 to $4,194 before pulling back to $4,158.
Santiment data shows bullish mentions doubled after the $4,000 break, but warns overconfidence can trigger pullbacks. ETH now finds support at $4,155-$4,160 after hitting $4,217 resistance.
Usman Salis
