TrindadeRuben

Ethereum (ETH) broke above $4,000 for the first time since December 2024, fulfilling the expectations for an ongoing rally. Over $24M was liquidated from short positions in only an hour. 

Ethereum (ETH) broke the long-awaited barrier of $4,000 for the first time since December 7, 2024, causing over $24M in short liquidations. ETH also led 24-hour liquidations, with $119M in short positions erased. 

ETH rallied above $4,012 on Binance, causing a wave of $119M in short liquidations for the past 24 hours. | Source: Coingecko

Following the recent liquidations, ETH open interest remained at $26.65B, near its three-year peak. In the past 24 hours, open interest rose by around 6.8%, with accumulated long positions above $3,850. 

ETH is up over 62% in the past three months, with the biggest climb kicking off in July. The token rose to $4,001.13 on Gate.io, with almost all exchanges at just under $4,000. Binance data showed ETH climbed above $4,012 briefly.

On Hyperliquid, short liquidations shifted the balance of positions. 29,307 traders are long on ETH, while only 14,332 traders are shorting the token. The biggest ETH short position on Hyperliquid has a nominal value of $339.16M, and was over $35M underwater during the latest price expansion.

ETH reflected a shift in sentiment

In the past weeks, ETH moved on a mix of peak spot demand from whales, as well as record open interest on derivative markets. The mix resulted in an accelerating rally after months of stagnant prices. ETH also rose to 0.033 BTC, accelerating faster than the leading coin. After the latest rally, ETH dominance returned to 12.1%, boosting hopes of an altcoin season. 

The extremely rapid rally also meant market sentiment went through anomalies. Crowd money is extremely bullish, while smart money has turned bearish. However, the attempts to short ETH are also the main factor behind the price expansion. 

At this price range, over 95% of traders are in profit, with little pressure to sell. Whales have already established a lower baseline price, and ETH is expected to extend its rally to a higher range and reflect the chain’s utility. 

With $ETH reaching $4,000 for the first time since December 2024, 95% of on-chain holders are now in profit. pic.twitter.com/AfEROdmWaL

— CryptoRank.io (@CryptoRank_io) August 8, 2025

Based on Kaito data, the current ETH rally also happens with the most positive sentiment for the past 12 months. The rally arrived soon after ETH dipped as low as $1,400, while whales repositioned with a lower cost basis. 

The recent rally still needs to break the resistance above $4,000 to attempt a new all-time high and fulfill the short-term $5,000 predictions.

ETH price rally boosts DeFi

Total value locked on Ethereum is now at levels not seen since early 2022, with over $86B in various protocols. Currently, lending is more mature, and liquidatable positions are as low as $997 per ETH. 

The increasing demand for lending also boosts ETH buying, leading to a bigger potential rally. Currently, buyers far surpass new weekly ETH production, with more tokens held closely in accumulation addresses. ETH is also staked or wrapped, more rarely leaving the ecosystem.

A bigger price rally may mean ETH will try to break its DeFi records from 2021. Since the 2021 bull market, ETH has only recovered eight times above $4,000, later breaking down to a lower range. The most recent rally still sparks hopes of an ongoing expansion.

The smartest crypto minds already read our newsletter. Want in? Join them.

According to Odaily, the U.S. House of Representatives has failed to pass a crucial procedural motion, resulting in a delay in the consideration of several bills, including those related to cryptocurrency legislation and defense spending. The motion, proposed by the Republican Party, was defeated with 196 votes in favor and 222 against.

FOMC will finally announce a rate cut by 2.5%
In 2021 it triggered altseason and pumped alts by 10,000%
What to expect and the alts I’m buying right now
Tomorrow’s FOMC meeting could mark a major turning point for crypto
After months of pressure - inflation, wars, slowing growth - the Fed is cornered
Markets are pricing in the first meaningful rate cut of 2025
Liquidity is coming back, and that changes everything
The need for a rate cut is clear - inflation is no longer driven by demand
Oil is spiking due to the Israel-Iran conflict, the dollar is too strong, and consumer spending is weakening
If the Fed stays tight, it risks dragging the economy into a hard landing
In 2020, the Fed cut rates to near-zero during COVID
Bitcoin went from $4K to $69K in under 18 months
Altcoins exploded, many doing 100x to 1000x
That was the power of liquidity - and it’s returning
Right now we have high rates, suppressed assets, and ETF momentum
But no spark, the rate cut could be it
Institutions are already positioning for a shift
Once the Fed eases, crypto will be first to react
That’s why I’m accumulating the alts that historically outperform when liquidity returns
This isn’t a short-term trade - it’s a macro setup
The rally may not happen instantly, but smart money is never late
Positioning starts before the headlines hit
Don’t wait for CNBC to say “The bull market is back”
Rate cuts are the trigger, and tomorrow may be the first shot
The Fed can’t hold tight forever with wars and debt piling up.
#GENIUSActPass #DAOBaseAIBinanceTGE #FOMCMeeting #BinanceAlphaAlert #IsraelIranConflict