Ethereum’s Resilience Tested as It Eyes Key $4,000 Threshold

Following recent market turbulence, Ethereum is demonstrating remarkable recovery strength. The weekend’s sharp downturn sent shockwaves across cryptocurrency portfolios, yet the digital asset occupying the second-largest market position is displaying notable fortitude. Market participants now question whether this rebound indicates sustainable momentum or merely a temporary pause before further volatility.

From a chart perspective, Ethereum’s performance offers several encouraging signals. The 200-day moving average, positioned near $3,100, has repeatedly served as reliable support during market weakness. More significantly, the psychologically important $4,000 level has transformed from resistance into a supportive foundation. Should the cryptocurrency maintain this footing, analysts observe that approximately $9.5 billion in short positions could face pressure if prices advance by 20%. Such a short squeeze scenario might dramatically accelerate upward... Read more...