Ethereum Eyes $4.7K as Bitcoin Hits $118K, $10B Shorts at Risk

The Ethereum price is trading around $4,323 as bullish momentum surges alongside the rally in Bitcoin, which is currently trading at $118k. The reactions of the crypto market to renewed liquidity and institutional flows are very strong, with Ethereum price aiming for the $4,700 resistance. Meanwhile, more than $10 billion of short positions are at risk of liquidation, emphasizing the volatility at play.

Ethereum Price Eyes Breakout For $4,700 Level

Ethereum price recovered to the $4,250 support level, now acting as a key support or base for continued upside. If the ETH price maintains this level, bulls may push the price toward $4,500 and $4,750, and then reach a new all-time high.

Analyst Ted pointed out that Ethereum reclaim of $4,250 adds fuel for another potential retest of $4,750. He warned that a drop below $4,250 would expose the token to a price of $4,000.  However, based on the market’s strength, bulls are in control.

Market conditions also favor Ethereum as Bitcoin gains give it a tailwind. The performance of the asset has coincided with a new wave of bullish sentiment for major altcoins.

Bitcoin Rally Strengthens Ethereum Momentum

One important element of Ethereum’s trajectory right now is Bitcoin’s rally to $118,000. Bitcoin is just 4% from its all-time high of $124,128, which is causing excitement in the larger market.

Crypto strategist Trader Tardigrade highlighted Bitcoin’s intact uptrend structure, suggesting that higher price levels are likely. Ethereum tends to follow similar structural moves, meaning the Bitcoin breakout could put Ethereum on a parabolic trajectory to $4,700.

Ethereum actually benefits from Bitcoin’s dominance by capitalizing on the capital spills from Bitcoin into altcoins. With the confirmation of Bitcoin’s uptrend, Ethereum’s chances of breaking above $4,500 are increasing.

The indecision in the macro environment is also driving the market rally, as investors consider crypto as a store of value. Ethereum is a trending digital asset among investors seeking to diversify their portfolio beyond Bitcoin, as the traditional markets are experiencing a volatile period.

Support and Resistance Levels in Ethereum Price

Interestingly, Ethereum price levels remain clear, and at the moment of writing, it is observed that the price is at a well-defined level of support at $4,250. This zone must be maintained to ensure bullish momentum in the short term.

Analyst Crypto Seth noted Ethereum had $10 billion in Ether short liquidations above key liquidations, which could become fuel for a sharp rally should they be triggered. He also emphasized the importance of maintaining the $4,250 level to sustain the upward momentum.

On the resistance side, $4,500 and $4,750 are immediate hurdles traders are keeping an eye on. A break above these levels could open the path for $5000 as indicating new highs in the current cycle.

The technical structure also indicated less selling pressure than in September, with consistently higher lows forming. This indicates a market shift, with buyers still holding the upper hand, which keeps Ethereum poised for gains.

Institutional Flows Indicate Growing Confidence

Institutional activity adds more weight to Ethereum. Recent data revealed that more than $80.9 million in inflows has been directed to Ethereum ETFs, with BlackRock alone purchasing $26.2 million worth of ETH.

Market analyst Michael van de Poppe stated that Ethereum is approaching the end of its correction period and could perform better over the coming weeks. He believed Bitcoin’s momentum would take the lead in this rally, followed by a major Ethereum breakout.

Source: Micheal van de Poppe, X

Such inflows indicate growing confidence among major investors, who continue to view Ethereum as a core asset. Growing institutional adoption adds further support for Ethereum approaching the $4,700 level in the near term.

Additionally, the demand for crypto has risen, creating more demand for Ethereum as institutions diversify their holdings. With this increased liquidity, Ethereum is now well-positioned to capitalize on the broader bullish momentum in digital assets.