TLDR
- Ethereum price recovered above $4,000 after a recent pullback, with the crypto now trading around $4,100
- Institutional investors including BlackRock and Vanguard reportedly accumulated ETH during the dip below $4,000
- Nearly $9.5 billion in short positions could face liquidation if ETH rallies 20% from current levels
- Technical analysis shows key resistance at $4,300 and $4,400, with support holding at $4,150
- Analysts predict Ethereum could reach $7,000 by May 2026 if current bullish momentum continues
Ethereum has started a recovery above the $4,000 level after experiencing a recent correction. The second-largest cryptocurrency is now trading around $4,100, posting a 7.8% daily gain.
The price cleared several key resistance levels during its recovery. ETH moved above both the $4,000 and $4,120 marks in recent hours.
Institutional investors appear to be taking advantage of the recent price weakness. According to market observers, firms including BlackRock and Vanguard purchased ETH during the dip below $4,000.
Crypto analyst Mike Investing stated that institutions collectively loaded billions in ETH during the pullback. He predicts the cryptocurrency could reach $7,000 by May 2026.
I’m officially calling it…$ETH had its final hard pullback below $4,000 before it begins its multi month incoming rally.
During the recent pullback institutions like BitMine, Blackrock, & Vanguard all loaded collectively billions in $ETH.
$7000+ by May 2026.
Mark my words… pic.twitter.com/m0xCGA0pb1
— Mike Investing (@MrMikeInvesting) October 12, 2025
The recovery comes after ETH formed a base above the $3,850 level. The price has cleared the 50% retracement level of the main drop from $4,758 to $3,422.
A bullish trend line is forming with support at $4,150 on the hourly chart. The cryptocurrency is trading above its 100-hour simple moving average.
Short Squeeze Setup
Market data reveals a potential short squeeze scenario forming around current price levels. Analyst TedPillows noted that $9.5 billion in short positions would be liquidated with a 20% price increase.
$9,500,000,000 in shorts will get liquidated if $ETH pumps 20%.
$2,620,000,000 in longs will get liquidated if Ethereum dumps 20%.
The max pain is now to the upside. pic.twitter.com/Yhz2hR0XTf
— Ted (@TedPillows) October 12, 2025
In contrast, only $2.6 billion in long positions face liquidation risk with a 20% decline. This imbalance suggests the market’s maximum pain level tilts toward the upside.
On-chain liquidation maps show heavy short exposure between $4,800 and $5,000. A move above these levels could trigger cascading liquidations.
The hourly MACD indicator shows gaining momentum in the bullish zone. The RSI is now above the 50 level.
Technical Levels
On the upside, Ethereum faces immediate resistance near $4,250. The next key resistance sits at $4,400.
The first major resistance is near $4,440 and the 76.4% retracement level. A clear move above $4,400 might send the price toward $4,500.
If ETH fails to clear $4,300, it could face a fresh decline. Initial support on the downside is near $4,150 and the trend line.
The first major support sits near $4,120. A break below this level might push the price toward $4,050.
Some traders are watching for short-term retracements. Analyst SailorManCrypto identified a possible three-drive pattern with bearish divergence on the 30-minute chart.
The $3,900 to $4,000 area remains a critical pivot point for short-term traders. This zone could serve as a demand area before the broader uptrend resumes.
The ETH staking ratio has climbed steadily. This removes supply from exchanges and tightens market liquidity.
Trading volume reached $59.2 billion over the past 24 hours. The price is currently stabilized above $4,100.
