- ETH crossed $4,000 for the first time in eight months, triggering $119M in short liquidations and pushing open interest near record highs.
- Whale accumulation, positive sentiment, and rising dominance point toward sustained bullish momentum and possible $5,000 targets.
- DeFi growth and high staking participation are reducing liquid supply, strengthening ETH’s market position.
Ethereum surged above $4,000 for the first time since December 2024, peaking at $4,012 on Binance and erasing $119 million in short positions over the last 24 hours. The move also caused $24 million in immediate liquidations, shaking out leveraged bears. Despite the liquidations, ETH open interest climbed to $26.65 billion, just shy of its three-year high, reflecting continued speculative appetite.
Shift in Market Positioning and Sentiment
Data from Hyperliquid shows the majority of traders are now long, with 29,307 long positions compared to 14,332 shorts. Whales have been accumulating at lower levels, reinforcing a bullish price floor. ETH dominance has risen to 12.1%, and its rally to 0.033 BTC suggests it’s outpacing bitcoin. Sentiment is the most positive in a year, with over 95% of traders in profit — a factor reducing selling pressure and potentially sustaining momentum toward $5,000 targets.
DeFi and Staking Fuel the Rally
Ethereum’s total value locked in DeFi protocols has reached $86 billion, the highest since early 2022. Demand for lending remains strong, with low liquidation thresholds at $997 per ETH, encouraging further accumulation. Staked and wrapped ETH continue to tighten supply, aligning with whale accumulation patterns and boosting price stability. With buyers outpacing new ETH issuance, the market structure favors a sustained uptrend.
