Ethereum recently hit a new all-time high above $4,900 before correcting 8.9% to $4,520, yet it still gained 7.6% over the past week, driven by strong upward momentum since 2021.

Technical analysis shows ETH has retraced from nearly $4,957 to around $4,400, with critical support levels at $3,900–$4,000; holding this support could lead to a rally toward $6,000–$8,000, while a break below might see prices fall to $3,500 or $3,200.

Market analysts are paying close attention to short-term patterns, especially recurring liquidation cycles at the start of each week, which significantly influence ETH’s price movements.

Historical data from April and June 2025 reveals massive long liquidations exceeding 300,000 ETH in a single day, highlighting the risks associated with high leverage in volatile markets.

Recent exchange netflow data indicates ETH outflows as investors withdraw coins for long-term holding, a typically bullish sign, amid growing institutional demand for ETH, especially around staking and ETFs.

XWIN Research Japan highlights the 'Monday Trap,' a pattern where leveraged long positions are often liquidated on Mondays due to increased liquidation volume after weekends, with Sundays and Fridays also experiencing high liquidations.