Ethereum Price News: Early Santa Rally? ETH Squeezes Bears Out in Just 4 Hours

Published: Dec 09, 2025, 19:06 GMT+00:00

Key Highlights

• Ethereum (ETH) surged from $3,100 to $3,400 in just 4 hours, squeezing out bearish positions.
• The market is preparing for a potential upward movement ahead of the upcoming FOMC meeting.
• ETH needs to surpass $3,500 to confirm a reversal of its current downtrend.

Market Overview

Ethereum has experienced a significant price increase of over 8% within the last 24 hours, beginning its ascent right after the New York trading session commenced. This movement comes just a day before the final Federal Open Market Committee (FOMC) meeting of the year, indicating a possible shift in market sentiment.

Short Liquidations and Market Sentiment

Data from CoinGlass indicates that short liquidations surged to $260 million as ETH's price climbed from $3,100 to $3,400. This spike in liquidations suggests that many traders were caught off guard by the rapid price increase.

Federal Reserve and Ethereum Upgrades

Market sentiment has been improving as the U.S. Federal Reserve is expected to cut interest rates for the third time. Additionally, Ethereum has recently completed the Fusaka upgrade, enhancing its scalability, reducing transaction fees, and increasing processing speeds. This upgrade follows the successful Pectra upgrade earlier in the year, coinciding with a growing institutional interest in cryptocurrencies.

Technical Analysis

Trading volumes for Ethereum have increased by 13%, reaching nearly $30 billion, which represents about 8% of its circulating market cap. The price action has broken out of a descending price channel and has moved above the 200-day exponential moving average (EMA), indicating a bullish long-term outlook. The Relative Strength Index (RSI) has also crossed above the mid-line, signaling positive momentum.

Future Outlook

Recapturing the $3,500 level is crucial for Ethereum, as it would confirm a trend reversal and invalidate the current downtrend. The Fear and Greed Index, currently at 24, suggests that the market sentiment is still cautious, but historically low readings indicate potential local bottoms. If ETH can reach $3,500, there is speculation that it could close the year at $4,000, leading to discussions of a potential "Santa Rally" in the crypto market.

Conclusion

The recent price movements and upgrades in Ethereum, combined with favorable market conditions, suggest a potential shift in the crypto landscape. Investors and traders are closely watching these developments as they could signal a significant change in market dynamics.