FameEX Hot Topics | ETH Breaks Higher vs BTC, but Sustained Gains Rely on $4.7K Support Zone

ETH is once again at the center of market attention as open interest in ETH futures hit a new all-time high of $70 billion on Friday. Such elevated levels of leverage often act as a warning sign, since extreme positioning has historically preceded sharp deleveraging events. These shakeouts tend to flush overexposed traders from the market before a sustainable leg higher can emerge. While bullish sentiment remains intact, traders are mindful of the risks that come with such aggressive leverage in the short term.

On Monday, ETH rallied nearly 5%, showing resilience after navigating what traders call the “Monday Trap,” where leveraged longs are often liquidated at the start of the week. Compared to Bitcoin, which managed only a modest 1% rebound, ETH’s strength underscores its growing momentum relative to BTC. A decisive short-term reversal, however, hinges on whether ETH can reclaim the $4,700 level and flip it into reliable support.

Market flows further strengthen the bullish narrative. Paired with rising leverage, this combination highlights ETH’s crossroads: institutional accumulation and liquidity inflows favor the upside, but excessive leverage increases the risk of sharp near-term volatility.

From a technical perspective, ETH climbed to $4,579 on Tuesday after retesting support near $4,350 and absorbing liquidity from a key order block. Momentum on lower timeframes remains constructive, yet mid-term charts reveal ETH is currently filling a bearish fair value gap between $4,600 and $4,450. If selling pressure persists, price could extend toward the $4,000 region, leaving bulls vulnerable.

For the bullish case to reassert dominance, ETH must reclaim equal lows around $4,662 and secure a daily close above $4,700. Such a move would align structures across timeframes and open the path toward $5,000. Conversely, failure to hold above $4,700 would imply the rally is driven by short covering rather than fresh demand. For now, $4,700 remains the critical pivot, separating the potential for correction from a renewed bullish advance.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.