Ethereum Surges Above $4,700 With Rising Confidence
Ethereum has gained 4.2% in the past 24 hours, surpassing the $4,700 mark. The move reflects renewed market optimism amid the U.S. government shutdown.
Trading volumes exceeded $44 billion, accounting for nearly 7% of ETH’s supply. This spike confirms robust buying activity and reinforces the bullish market outlook.
Liquidations Signal Strong Market Reversal
In just one week, over $500 million worth of ETH short positions were wiped out. This massive liquidation wave highlights traders closing bearish bets as prices rise.
Such conditions typically fuel short squeezes, propelling prices higher as bearish momentum fades and demand surges among institutional and retail buyers.
Political Uncertainty Boosts Crypto Sentiment
The ongoing U.S. government shutdown has weakened the dollar, benefiting major cryptocurrencies. Investors are turning to crypto as a hedge against fiscal instability.
Ethereum, in particular, is gaining traction as the altcoin market expands its share of total crypto capitalisation, indicating the early stages of altcoin season.
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Ethereum Approaches the $5,000 Resistance Level
Ethereum’s daily chart shows strong support around $4,000, a level now acting as a foundation for continued gains. Bulls are now targeting a break above $5,000.
Should ETH surpass this resistance, analysts predict an extended rally toward $7,000 or even $10,000 during this ongoing market cycle.
Improved Macroeconomic Conditions Support ETH Growth
With the Federal Reserve preparing another rate cut, the macro backdrop favours digital assets. Lower borrowing costs and rising liquidity enhance crypto market appeal.
Additionally, growing optimism around altcoin ETFs has increased institutional exposure, setting the stage for further appreciation in Ethereum’s value.
Institutional Inflows Drive Renewed Market Strength
Since late September, Ethereum-linked ETFs have attracted $1.3 billion in net inflows. This renewed institutional demand underscores long-term confidence in Ethereum.
The inflows highlight a broader trend of professional investors viewing ETH as a key programmable asset, complementing Bitcoin’s role as digital gold.
Ethereum’s Long-Term Outlook Remains Bright
Ethereum’s technical setup and macro fundamentals align for potential new highs. Analysts see sustained momentum if ETH holds above $4,700 and breaks past $5,000.
As institutional inflows grow and network activity expands, Ethereum remains poised for dominance in decentralised finance, NFTs, and enterprise applications.
