Ethereum’s (ETH) 5.23% surge in just 24 hours has caught the attention of crypto enthusiasts and investors alike. With a substantial 30% volume spike and a critical $2.5K support level holding firm, the question now is: how high can this rally go?
The crypto market is seeing a return of risk appetite, as futures traders ramp up leverage. A striking $37.21 million worth of Ethereum shorts were wiped out in a single day, with over $1.5 billion in new positions being opened. This momentum isn’t coincidental—whales and institutional investors have been loading up on ETH, injecting an impressive $100 million into the market. Their decisive action helped Ethereum avoid a major retracement to pre-election levels, keeping the price steady at $2.5K.
Despite this recovery, Ethereum remains vulnerable to another pullback. After a sharp 32% drop from its post-election peak of $4,016, Ethereum’s profit-taking phase saw over 95% of HODLers in profit. But this number has now dropped to 66%, indicating the market is still in flux. While it’s not yet at the level of a true market bottom, it does leave Ethereum at risk of another downturn, especially with lingering market uncertainties.
Meanwhile, Ethereum’s performance against Bitcoin (ETH/BTC) has reached a three-year low, but a bullish reversal is emerging. With the MACD indicator turning green and Bitcoin in consolidation mode, it appears that traders are eyeing Ethereum for a potential rotation. However, despite the 5% surge, exchange reserves have increased by over 4%, indicating that traders are not fully embracing the HODL mentality.
Also Read: Ethereum Set for New ATH as Altcoins Eye Explosive Rally in 2025
A pullback seems almost inevitable. A staggering 9.9 million addresses, holding 62.14 million ETH, flipped into profit at $2,560, potentially setting up for a $1.5 billion sell-off. The real question now is whether smart money can keep Ethereum in consolidation long enough for a breakout, or if the looming fear will send the price back to $2,200.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
