ETH/USD Daily Chart (Coinbase) – Source: TradingView
The successful implementation of the Pectra upgrade along with multiple regulatory tailwinds, especially in the United States has produced a wave of positive momentum for ETH.
Although the price initially plunged after hitting this threshold during the beginning of the American session, it has now recovered and the market seems determined to retest those December highs of $4,100 today.
Trading volumes have increased by 23% in the past 24 hours as ETH makes its way to this key psychological threshold.
In a previous ETH price prediction, we emphasized that ETH had tagged and bounced off a key trend line support and that favored a push to $4,000 in the near term. Here we are, just three days after that article came out, and ETH has produced an 11% gain.
Big Liquidations Confirm a Short Squeeze in the Making
Depending on how the price behaves at $4,100, this could either be a good time to take some profits off the table if there are clear signs that selling pressure is rising or it could also set up ETH for a major rally if bulls pull a short squeeze.