Ethereum ATH $4,956 on $63.9B Volume Sparks Altseason
Ethereum surged to a fresh all-time high of $4,956 as 24-hour trading volume jumped 125% to $63.9 billion. Short-squeeze liquidations hit $301 million, while derivatives activity spiked: futures volume rose 162% to $210.7 billion, options volume climbed 221% to $2.96 billion, and open interest reached $20.01 billion. Capital rotation out of Bitcoin reduced BTC dominance and boosted altcoins, triggering speculation of an Ethereum-led altseason. Analysts note a similar market structure in the 2021 bull run, when high volumes and mass short liquidations preceded sustained rallies. At the time of writing, ETH traded around $4,635, up 6.9% over seven days, with a market cap of $559.5 billion and circulating supply near 120.7 million. Key takeaways: ETH price discovery underway, strong market momentum driven by volume and leveraged positions, elevated volatility risk from high leverage, and a shift in capital flows favoring Ethereum and altcoins.
Bullish
Ethereum’s breakout to $4,956 on heavy trading volume and significant short liquidations points to bullish momentum. The surge in futures and options activity mirrors the market dynamics seen during the 2021 rally, where high leverage and short squeezes preceded extended price gains. Reduced Bitcoin dominance and capital rotation into ETH underpin expectations of an altseason led by Ethereum. In the short term, elevated open interest and leveraged positions could amplify volatility, but sustained volume and on-chain metrics support further upside. Over the longer term, continued inflows into Ethereum and growing ecosystem adoption may reinforce its leadership role among altcoins.