Ethereum (ETH) has broken above $4,200 for the first time since December 2021. This astounding weekly gain has sparked a whirlwind of bullish predictions and bearish correction calls. The increase cleared out over $200 million worth of shorts. This subsequent event is indicative of the volatility and risk inherent in leveraged/traded crypto markets. Although some analysts are forecasting a rise as high as $12,000, others are warning bulls to temper their enthusiasm with thoughts of a potential bear trap.

Ethereum has jumped 19% in the last 7 days. Perhaps even more drastically, in just the last 24 hours, it jumped a staggering 7.5%! Investors and analysts are working themselves into a tizzy over this positive trend. Lots of people think that this is all leading to the launchpad of a historic bull run.

In crypto circles, the rapid rise has led to mixed responses from traders and crypto influencers. Tracer, a prominent voice on X, told their 312,000 followers:

"$ETH is about to break 4-year resistance… $12,000 is not just a dream anymore." - Tracer

Crypto Rover predicts a run to $6,000, fueled by the institutional adoption of Ethereum.

Van de Poppe recommended that investors start reallocating funds into the ETH ecosystem to find more attractive risk-reward scenarios. Likewise, EGRAG CRYPTO cautioned that parabolic moves tend to come crashing down violently.

"It is a little too risky to be buying $ETH at these highs," - Michaël van de Poppe

Yet even those with no stake in the crypto sphere have recently begun to draw attention. Former U.S. President Donald Trump’s son Eric Trump has come out in support of Ethereum’s recent price surge.

The massive short squeeze liquidation erased at least $200 million in leveraged down shorts positions. Cryptocurrency trading has high stakes, and this dramatic move underscores that reality. This recent liquidation event serves as a reminder of just how much money can be lost when one tries to bet against the market’s bullish momentum.

"It puts a smile on my face to see ETH shorts get smoked today. Stop betting against BTC and ETH – you will be run over." - Eric Trump

The price surge put more than $200 million in leveraged short positions to the sword, demonstrating the high stakes involved in cryptocurrency trading. This liquidation event underscores the potential for significant losses when betting against the market's upward momentum.