TLDR:
- Ethereum posted its strongest quarterly returns since 2021, with swings of -45.41%, +36.48%, and +70.4% this year.
- Analysts say pauses in ETH rallies help sustain bullish momentum instead of draining the market too quickly.
- Short interest near $4,500 creates pressure, with a breakout likely to trigger a liquidity-driven squeeze.
- Ethereum trades at $4,211, down 8.78% on the week, holding $4,000 support as traders await Jackson Hole updates.
Ethereum has been swinging sharply this year, but the latest market action shows why investors are keeping it on their radar.
The asset has stacked up one of its strongest quarterly streaks since 2021, despite recent pullbacks. Traders are now watching key levels where liquidity sits, waiting for the next breakout trigger.
A battle between short interest and bullish momentum is setting the stage for the months ahead. With fresh data showing resilience, the focus turns to whether Ethereum can reclaim its peak.
Ethereum’s Quarterly Returns Show Strong Momentum
Market analyst Daan Crypto Trades pointed out that Ethereum has logged the biggest quarterly returns since the first quarter of 2021.
The asset has moved through wide swings this year, with percentages ranging from steep drops to sharp recoveries. A sequence of -45.41%, +36.48%, and +70.4% showed just how volatile the token has been.
He added that these pullbacks are not entirely negative, as pauses in momentum often create stronger bases for extended rallies.
Even with this recent downturn, $ETH still has its biggest Quarterly return since Q1 2021.
If you want to see this trend continue, it's good that price is stalling out every now and then. That's the only way to maintain a bullish trend for more than just a few weeks.
Pretty… pic.twitter.com/C65RFoSHCM
— Daan Crypto Trades (@DaanCrypto) August 21, 2025
The stalling periods have kept bullish momentum intact rather than exhausting the market too quickly. This pattern is what keeps traders cautious but also optimistic for another leg higher.
Ethereum’s position above $4,000 is giving analysts a line in the sand for short-term confidence. Price continues to test and hold this range, drawing more interest to what comes next.
Ethereum Price Levels Near $4,500 Remain Key
Bitcoinsensus pointed to short interest stacking heavily around the $4,500 level, calling it a zone to watch for a squeeze.
Liquidity heatmaps show that this area could trigger sharp moves if price manages to push through. The current $4,100 area is serving as a support level where previous liquidations cleared sellers.
$ETH has now flipped $4K resistance into support.
Big buyers stepped in as expected, and now a relief rally is happening.
I'm not expecting any major move till Friday due to the Jackson Hole summit.
If Powell sounds dovish, ETH will rally towards a new ATH.
If not, ETH will… pic.twitter.com/8xCCUEma74
— ZYN (@Zynweb3) August 21, 2025
Traders such as Zyn highlighted that Ethereum flipping $4,000 into support has already attracted bigger buyers back into the market.
He expects muted movement until Friday, when Federal Reserve Chair Jerome Powell speaks at the Jackson Hole summit. If Powell takes a softer tone, market watchers believe Ethereum could rally quickly toward a new all-time high.
According to data from CoinGecko, Ethereum trades at $4,211.42 at press time, reflecting a 2.47% drop in 24 hours. Over the past week, the coin has been down 8.78%, yet traders remain focused on the $4,500 liquidity level for the next decisive move.
