TL;DR
- ETH rose 8.5% in the past 24 hours and is now trading above $4,100.
- If the daily candle closes above $4,232, the coin could extend its recovery.
ETH rebounds above $4,100 after Friday’s flash crash
Ethereum, the second-largest cryptocurrency by market capitalization, staged a notable recovery after Friday’s sharp sell-off. During the market drop, ETH lost more than 30% of its value within an hour and briefly touched the $3,500 area.
Since then, the token has recovered about 8.5% over the past 24 hours and is currently trading near $4,165. The crash followed announcements of new tariffs on imports from China by President Trump, which triggered broad market turmoil.
Nick Forster, founder of the on-chain options platform Derive.xyz, commented on the recent market events, noting that on the day of the crash both BTC and ETH option skews collapsed sharply, reflecting a surge in demand for downside protection. Option skew measures the relative demand for calls versus puts, and more negative skew indicates higher put demand.
“Volatility across BTC and ETH markets spiked dramatically. Typically, a sudden sell-off raises short-term volatility (1–7 DTE) only, as traders expect short-lived disruption to subside. However, Friday’s downturn lifted volatility across all expiries, suggesting expectations of further noise and dislocation,” Forster added.
Daily close above $4,232 could trigger a sharp rally
The ETH/USD 4-hour chart shows inefficiency and bearish structure following Friday’s move. Last week ETH failed to find support near the daily level at $4,488 and fell more than 20% on Friday. It has since recovered modestly and closed above $4,150. At the time of writing, ETH is trading around $4,160.
Like Bitcoin, Ethereum’s MACD still leans bearish, but it could flip quickly if buying pressure grows. The RSI sits around 54, above the neutral 50 level, which indicates buyers are gradually regaining control.
If ETH sustains its recovery and the daily candle closes above the $4,232 resistance, the coin could spike toward the next key resistance at $4,488. Conversely, failure to break $4,232 could send ETH lower over the coming days, potentially expanding losses toward the 61.8% Fibonacci retracement level near $3,593.