TL;DR
- ETH rose 8.5% in the past 24 hours and is currently trading above $4,100.
- If the daily candle closes above $4,232, the token could continue its recovery.
ETH Breaks Above $4,100 After Friday’s Flash Crash
Ethereum, the second-largest cryptocurrency by market capitalization, has staged a strong recovery after a sharp sell-off on Friday. The crash briefly pushed ETH into the $3,500 area, wiping out more than 30% of its value in under an hour.
Over the past 24 hours the token has gained about 8.5% and is trading near $4,165. The sudden downturn followed an announcement of new tariffs on Chinese imports by President Trump, which rattled markets.
Nick Forster, founder of on-chain options platform Derive.xyz, noted that option skew for both BTC and ETH plunged sharply on the day of the crash, signaling a rush for downside protection. Skew measures relative demand for calls versus puts; a larger negative skew indicates stronger demand for puts.
“Volatility in the BTC and ETH markets spiked markedly. Typically, a large sell-off raises only short-term volatility (1–7 DTE) as traders expect near-term turbulence to subside. However, Friday’s slump saw elevated volatility across all expirations, suggesting traders anticipate sustained turbulence and a rough road ahead,” Forster added.
ETH Could Surge if Daily Candle Closes Above $4,232 Resistance
Friday’s price action left the ETH/USD 4‑hour chart biased and inefficient. ETH failed last week to hold support near $4,488 on the daily timeframe and plunged more than 20% on Friday. Since then it has recovered modestly and is trading above $4,150; at the time of writing ETH is around $4,160.
Like Bitcoin, Ethereum’s MACD still favors bears, but this could change quickly if buying pressure picks up. The RSI sits at 54, above the neutral 50 level, which indicates buyers are regaining control.
If ETH sustains its recovery and closes the daily candle above the $4,232 resistance, it could rally toward the next key resistance at $4,488. Conversely, failure to overcome $4,232 could extend the decline in the coming days toward the 61.8% Fibonacci retracement near $3,593.