Ethereum – the second largest cryptocurrency in the world by market capitalization – has surged past the $4,250 mark today, the first time since December 2021, wiping out over $200 million in short positions in the blink of an eye.
This development immediately attracted the attention of market observers. Some believe this could be a launchpad for a historic rise to $12,000, while others warn it might just be a severe 'bull trap'.
The bulls aim for a price of $12,000
Anonymous on-chain analyst Tracer shared with over 312,000 followers on X: "$ETH is about to break the 4-year resistance... $12,000 is no longer a dream." According to Tracer, if the breakout is confirmed, the market will witness a 'monster rally' that requires investors to act quickly.
YouTuber Crypto Rover also agrees, predicting Ethereum will hit $6,000 thanks to institutional participation. "Once BlackRock's spot Ethereum staking ETF is approved, we will 'instantaneously' move to $6,000," Rover stated.
Data from Glassnode shows that the number of first-time buyers and momentum investors is rising sharply – a sign that new demand is flooding into the ETH market.
The breakout past $4,200 is supported by a 19% increase over the week, with a 7.5% rise in the last 24 hours, wiping out over $200 million in short positions and surprising many.
Eric Trump, son of President Donald Trump, even posted on X: "It's refreshing to see ETH short positions wiped out today. Don't bet against BTC and ETH – you'll get crushed."
The bears warn of a 'shock'
However, not everyone is enthusiastic. Analyst EGRAG CRYPTO – who is skeptical about ETH – stated: "If the ETH/BTC pair closes above 0.039... I will short ETH to the end." He sees this rise as an opportunity for 'personal revenge' with a large short.
Even optimistic voices like Michaël van de Poppe recommend caution: "Buying ETH at such high prices is quite risky." He advises investors to shift capital to projects within the Ethereum ecosystem for a better risk/reward ratio.
Currently, ETH is less than 15% away from its all-time high, and speculative capital is flooding in. For the bulls, the target of $12,000 is no longer fanciful. However, warnings from EGRAG and Van de Poppe indicate that vertical rallies can end with a painful drop.
