Ethereum recently hit a new high above $4,900, but then dipped down to around $4,520. That’s an 8.9% drop from the peak, but it’s still up 7.6% for the week. While the long-term outlook is positive, some analysts are looking at shorter-term patterns.
The “Monday Trap”: A Weekly Liquidation Cycle
XWIN Research Japan noticed something interesting: a lot of Ethereum liquidations happen at the start of each week, especially on Mondays. This “Monday Trap” seems to be caused by leveraged traders – those who bet big on price increases. When the price drops, these leveraged positions get liquidated, which makes the drop even worse.
In April and June of 2025, over 300,000 ETH were liquidated in a single day due to these sharp price swings. The pattern is clear: Monday sees the most liquidations, followed by Sunday and Friday. Saturday has the fewest, probably because the markets are quieter. Essentially, weekend optimism often leads to Monday losses for leveraged traders.
Technical Analysis and Future Price Predictions
Crypto analyst Crypto Patel points out that Ethereum has pulled back from its high of $4,957 to around $4,400. He sees strong support around $3,900-$4,000. If this support holds, we could see Ethereum climb to $6,000-$8,000. However, if it breaks, prices could fall to $3,500 or even $3,200.
Long-Term Outlook: Leverage vs. Institutional Demand
The interplay between these weekly liquidations and key support levels will be crucial in determining Ethereum’s price in the coming months. Interestingly, there’s been a lot of ETH leaving exchanges lately, suggesting that investors are holding onto their coins for the long term. Plus, institutional interest in Ethereum is growing, especially with talk of integrating staking into regulated financial products like ETFs.
In short, while the short-term volatility is something to watch out for, especially for leveraged traders, the long-term outlook for Ethereum remains generally positive.
