TL;DR
- ETH rose 8.5% over the past 24 hours and is now trading above $4,100
- The coin could extend its recovery if the daily candle closes above $4,232
ETH Breaks Above $4,100 After Friday’s Crash
Ether, the second-largest cryptocurrency by market capitalization, is staging a strong recovery following Friday’s sharp crash. That sell-off briefly pushed ETH down to the $3,500 area after losing more than 30% in under an hour.
Since then the coin has regained ground, rising 8.5% in the last 24 hours and trading around $4,165 per token at the time of writing. The sudden drop was triggered in part by President Trump’s announcement of new tariffs on goods imported from China, which sparked broad market turmoil.
Commenting on the market event, Nick Forster, founder of on-chain options platform Derive.xyz, said that on the day of the flash crash option skew dropped rapidly for both BTC and ETH, reflecting a rush into downside protection. Skew measures relative demand for calls versus puts; more negative readings signal higher demand for puts.
“Volatility spiked sharply across BTC and ETH markets. Typically, rapid sell-offs only push short-term volatility (1–7 DTE) higher, because traders expect the short-term dislocation to subside. However, Friday’s crash drove elevated volatility across expiries for the whole day, signaling expectations of sustained turbulence and a choppy path forward,” Forster added.
ETH Could Surge if Daily Candle Closes Above $4,232 Resistance
The 4-hour ETH/USD chart remains bearish and dislocated after Friday’s price action. ETH failed to hold daily support at $4,488 last week and experienced a deep sell-off on Friday, dropping more than 20%. The price has recovered somewhat and is now back above $4,150, trading near $4,160 at the time of this report.
Like Bitcoin, Ethereum’s MACD still supports a bearish bias, though it could shift as buying pressure increases. The RSI sits at 54, above the neutral 50 level, indicating buyers are regaining control of the market.
If ETH continues to rally and closes the daily candle above the $4,232 resistance, the coin could aim for the next key resistance at $4,488. Conversely, failure to break above $4,232 could open the door for further decline toward the 61.8% Fibonacci retracement level near $3,593 in the coming days.