Ethereum (ETH) Preparing to Surge to $4,000, Here’s the Analysis!

Updated

December 11, 2025

Gambar Ethereum (ETH) Preparing to Surge to $4,000, Here’s the Analysis!

Jakarta, Pintu News – Ethereum is showing a positive trend again, reaching its highest point since November 13 and increasing 30% from its lowest point in November. This price increase comes ahead of the Federal Reserve’s interest rate decision to be announced on Wednesday. Read the full info in this article!

Ethereum Technical Analysis: Indicators Show Bullish Signals

Ethereum’s daily chart shows that the price has rebounded in recent days and is now at its highest level since November. The token has managed to break the upper limit of a falling wedge pattern, which is often considered a bullish reversal signal.

In addition, Ethereum is also close to changing the Supertrend indicator from red to green. This change last occurred in July, and after that, the token’s price increased to record highs a few months later. This movement could push Ethereum’s price beyond $4,000 in the near future.

Increased Short Liquidation and its Impact on Price

Ethereum has also seen an increase in price due to a surge in liquidation of short positions. Data from CoinGlass shows that these liquidations have reached over $120 million, trailing only Bitcoin whose liquidations reached $160 million.

Short liquidation occurs when a leveraged position loses value to such an extent that its collateral is no longer sufficient to meet margin requirements. This phenomenon often triggers price increases as the market reacts to the mass closing of short positions.

Market Optimism Ahead of Fed Rate Decision

Ethereum’s price rise was also driven by market expectations of the Federal Reserve’s interest rate decision. Data from Polymarket and Kalshi shows that the odds for an interest rate cut have jumped to 95%.

Generally, interest rate cuts tend to increase demand for riskier assets such as cryptocurrencies and stocks. In addition, Ethereum’s funding rate has remained positive in recent weeks, suggesting that traders expect a rise in the token’s price in the short term.

Conclusion

With various supporting factors, including market optimism and favorable technicals, Ethereum seems to be gearing up for its next bullish phase. Investors and market watchers will be waiting with great anticipation to see if this positive trend will continue, especially after the important decision from the Federal Reserve.

FAQ

What is Ethereum (ETH)?

Ethereum (ETH) is a blockchain platform that allows developers to build and run decentralized applications (dapps). ETH is the native token of the platform.

Why has the price of Ethereum (ETH) risen recently?

Ethereum (ETH) prices rose due to several factors, including expectations of interest rate cuts by the Federal Reserve, increased liquidation of short positions, and technical indicators showing a bullish trend.

What is short liquidation and how does it affect the price of Ethereum (ETH)?

Short liquidation occurs when a leveraged position loses value to such an extent that its collateral is insufficient to meet margin requirements. This often triggers price increases due to the mass closing of short positions.

How do market expectations of the Federal Reserve’s interest rate decision affect the price of Ethereum (ETH)?

Market expectations that the Federal Reserve will cut interest rates have increased opportunities for investments in riskier assets such as Ethereum (ETH), as usually interest rate cuts boost demand for such assets.

What does a positive funding rate mean in the context of Ethereum (ETH) trading?

A positive funding rate in Ethereum (ETH) trading means that traders holding long positions pay fees to short sellers. This is an indicator that traders expect the token’s price to continue rising in the short term.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

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