On Friday, the price of Ethereum broke through $4000, becoming the asset with the most short liquidations among all crypto assets that day, with analysts saying this could pave the way for short covering.
This rebound led to Eric Trump, son of U.S. President Donald Trump, subtly mocking bearish traders.
Traders say $4100 is the key for 'short covering'.
A post by Trump on X said: 'Seeing Ethereum shorts being squeezed today makes me smile. Stop fighting Bitcoin and Ethereum — you will be crushed.'
On Friday, approximately $105 million in Ethereum short positions were liquidated, accounting for 53% of the nearly $199 million total short liquidation in the entire crypto market, with CoinGlass showing Ethereum surpassing $4000 for the first time since December 2024.
According to Nansen data, the price of Ethereum rose to $4060 during the day, up 4.6% within 24 hours, and fell back to $4015 at the time of publication.
Crypto trader Ash Crypto pointed out that the real test will be $4100, calling it a 'major obstacle'.
'If Ethereum breaks through $4100, it could trigger short covering, soaring to $4400-4500 within just a few hours.' Ash Crypto said.
Optimism in the crypto industry towards Ethereum is rising.
Crypto trader Ted said: 'I have never seen the market so bullish.' He mentioned increased institutional interest in Ethereum and Ethereum ETFs.
In recent days, approximately $537 million flowed into spot Ethereum ETFs, according to Farside data.
Some predictions for Ethereum's price are quite bold. After breaking $4000, crypto trader Moustache said: 'I know this sounds crazy, but I think Ethereum will rise above $10,000.'
Meanwhile, Fundstrat co-founder Tom Lee stated that Ethereum is now in its 'Bitcoin 2017 moment', potentially reaching up to $16,000.