The world’s second-largest cryptocurrency by market cap blasted past $4,200 today for the first time since December 2021, liquidating $207 million in shorts in the process.
The movement has piqued the interest of market watchers, with some claiming it’s the launchpad for a historic run to $12,000, even as others still feel it’s a brutal bear trap.
Extreme Bull Sees $12K
Fueling the fire was pseudonymous on-chain analyst Tracer, who told their over 312,000 followers on X that “$ETH is about to break 4-year resistance… $12,000 is not just a dream anymore.” According to them, a confirmed breakout would unleash a “MONSTER rally” that would demand immediate positioning.
They were not alone in their raving, with YouTuber Crypto Rover predicting a run to $6,000 on the back of institutional uptake of the cryptocurrency.
“Once BlackRock’s Spot $ETH Staking ETF gets approved. We teleport to $6,000,” the influencer declared.
Data from Glassnode lends some credence to their optimism, noting a “sharp rise in both first-time buyers and momentum buyers,” a sign of fresh demand coming into the ETH market.
Ethereum’s run past the $4,200 barrier was powered by a 19% weekly gain, with a 7.5% jump in the last 24 hours putting more than $200 million in leveraged short positions to the sword and drawing cheers from unlikely corners. Even Eric, the son of U.S. President Donald Trump, tweeted:
“It puts a smile on my face to see ETH shorts get smoked today. Stop betting against BTC and ETH – you will be run over.”
Bears Whisper of an Imminent Reckoning
However, not everyone is celebrating. Noted analyst and self-proclaimed ETH skeptic EGRAG CRYPTO revealed a chilling plan: “If #ETH / #BTC closes above 0.039… I plan to short the shit out of #ETH.” He sees this pump as a potential setup for a massive, portfolio-boosting short opportunity, calling it “personal revenge.”
Even bullish voices like Michaël van de Poppe are urging caution at these levels: “It is a little too risky to be buying $ETH at these highs,” he posted on X, advising investors to rotate capital into the ETH ecosystem for better risk/reward.
With ETH now less than 15% below its all-time high and momentum buyers piling in, the $12,000 call no longer seems pure fantasy to the permabulls. Yet, EGRAG’s lurking short and Van de Poppe’s warning about overextended prices should be stark reminders: parabolic moves can end in pain.
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