Ethereum touched $4,300 before easing to $4,270 as traders booked profits. The rally marks ETH’s highest level since March 2024, fueled by derivatives momentum and broader market strength.
Market Drivers:
Short Gamma Fuel: Dealers’ short gamma positioning between $4,000–$4,400 forces market makers to buy ETH as price rises — potentially accelerating upside toward $4,400.
Leverage Building: Futures open interest is at a multi-month high, while funding rates remain elevated, showing strong long dominance but higher liquidation risk.
On-Chain Signals: Whale deposits rose slightly at $4,300, hinting at distribution, while over 27% of ETH supply remains staked, limiting sell pressure.
Key Levels to Watch:
Immediate Resistance: $4,300 and $4,320–$4,340 zone.
Major Resistance: $4,400 — key gamma flip zone, potential “price magnet.”
Support Levels: $4,250 (short-term floor), $4,180 (previous consolidation).
Breakdown Risk: Below $4,150 could trigger a drop toward $4,000.
Outlook:
Holding above $4,250 keeps momentum intact and sets the stage for a potential quick rally toward $4,400. A rejection could bring a pullback to $4,180–$4,200 before any new breakout attempt. Traders should watch options flows, spot buying strength, and whale activity for confirmation.