Ethereum News: Ethereum Hits $4,300 Before Correction — Traders Eye $4,400 as Next Milestone
Key Points
ETH briefly touched $4,300 before dropping to $4,270 amid profit-taking.
$4,400 remains the next important upside target, supported by the short gamma position in the options markets.
Strong open interest and elevated funding rates suggest bullish momentum but increase the risk of liquidation cascades.
On-chain data shows that whale accumulation is slowing near $4,300 as sellers defend key resistance.
Ethereum (ETH) rose to $4,300 early Saturday before pulling back to $4,270, as traders secured profits after a week-long rally driven by derivative positioning and overall strength in the crypto market. The move marks the highest price of ETH since March 2024 and occurs amid heightened speculation about a potential 'quick' rally to $4,400.
According to Amberdata, the net gamma exposure of dealers in the ETH options market listed on Deribit remains negative between $4,000 and $4,400. This setup forces market makers to buy ETH as its price rises to cover exposure, a feedback loop that can accelerate upward moves. The gamma profile turns positive near $4,400, making that level a likely 'price magnet' for traders.
Key Resistance and Support Levels
Immediate Resistance: $4,300 (psychological level) and $4,320–$4,340 (seller concentration zone).
Major Resistance: $4,400, where the options market gamma turns positive and sellers may intensify.
Support Levels: $4,250 (short-term floor) and $4,180 (last consolidation zone).
Crash Risk: Below $4,150 could trigger long liquidations towards $4,000.
Futures and Derivatives Outlook
Open Interest: The open interest of ETH futures on major exchanges hit a multi-month high, indicating that a leveraged position is being built.
Funding Rates: Remain positive and above the quarterly average, suggesting long dominance but also a higher risk of a squeeze.
Options Positioning: The short gamma between $4,000–$4,400 creates conditions for amplified moves if momentum persists.
On-Chain Dynamics and Supply
Exchange Flows: Whale deposits increased slightly to $4,300, signaling possible distribution.
Supply Staking: Over 27% of the ETH supply remains staked, reducing immediate selling pressure.
Network Activity: Stable gas usage, with DeFi protocols representing the majority of transaction fees.
Market Context and Next Steps
Ethereum's performance follows the CoinDesk 20 Index, which has risen 4.5% in the last 24 hours, along with an increased risk appetite in the broader crypto market. The bullish case hinges on ETH staying above $4,250, allowing derivative dynamics to push towards the $4,400 milestone.
However, if sellers limit the move and profit-taking intensifies, a pullback towards $4,180–$4,200 could develop before any new breakout attempt. Traders are watching for confirmation in options flows, spot demand, and whale positioning before committing to aggressive bullish bets.
