Ethereum News: ETH Nears $4K Resistance With $930M Short Liquidation Risk – Will It Break Through?
Ethereum (ETH) is at a critical juncture as it approaches the $4,000 resistance level, with $930 million in short liquidation risk looming above. Will ETH break through, or will traders face a sharp pullback? Here’s the latest Ethereum news and analysis.
Ethereum Price Nears $4K Resistance: What’s at Stake?
ETH has been hovering below the $4,000 mark since December 2025, but recent on-chain data suggests a breakout could be imminent. The +1σ active realized price band, currently near $4,500, has historically acted as a ceiling. A clean move above $4,000 could trigger a surge toward $4,500, but volatility risks remain high.
$930M Short Liquidation Risk: Fuel for a Rally?
Liquidation maps reveal a dense cluster of short positions just above $4,000. A breakout could liquidate up to $930 million, potentially accelerating ETH’s upward momentum. Key points to watch:
- Derivative markets: ETH perpetual futures have overtaken Bitcoin in volume dominance for the first time since 2022.
- Trader sentiment: Analysts like Byzantine General note ETH is “too strong” for a bearish reversal.
- On-chain activity: Glassnode data highlights strong network activity supporting bullish momentum.
Bearish Divergence: A Warning Sign for Ethereum?
Despite the optimism, technical indicators flash caution. The RSI shows bearish divergence on both 4-hour and daily charts, suggesting buyer exhaustion. Key support levels:
- Immediate support: $3,700 (fair value gap).
- Long-term support: $3,200–$3,300 (risk of structural breakdown).
Conclusion: Prepare for Volatility
Ethereum’s bullish momentum is undeniable, but traders must stay vigilant. A breakout above $4,000 could ignite a rally, while failure may lead to a pullback. Monitor volume and liquidation levels closely.
FAQs
1. What is the +1σ active realized price band?
It reflects the average cost of ETH actively traded on the network and has historically acted as a resistance level.
2. How could short liquidations impact ETH’s price?
A breakout above $4,000 could force $930M in short positions to close, potentially fueling a rapid price increase.
3. Why is bearish RSI divergence concerning?
It indicates weakening momentum despite higher prices, often preceding a pullback.
4. What are key support levels if ETH drops?
Watch $3,700 (short-term) and $3,200–$3,300 (long-term) for potential buying opportunities.
