The worlds second-largest cryptocurrency by market cap blasted past $4,200 today for the first time since December 2021, liquidating $207 million in shorts in the process.

The movement has piqued the interest of market watchers, with some claiming its the launchpad for a historic run to $12,000, even as others still feel its a brutal bear trap.

Extreme Bull Sees $12K

Fueling the fire was pseudonymous on-chain analyst Tracer, who told their over 312,000 followers on X that $ETH is about to break 4-year resistance $12,000 is not just a dream anymore. According to them, a confirmed breakout would unleash a MONSTER rally that would demand immediate positioning.

They were not alone in their raving, with YouTuber Crypto Rover predicting a run to $6,000 on the back of institutional uptake of the cryptocurrency.

Once BlackRocks Spot $ETH Staking ETF gets approved. We teleport to $6,000, the influencer declared.

Data from Glassnode lends some credence to their optimism, noting a sharp rise in both first-time buyers and momentum buyers, a sign of fresh demand coming into the ETH market.

Ethereums run past the $4,200 barrier was powered by a 19% weekly gain, with a 7.5% jump in the last 24 hours putting more than $200 million in leveraged short positions to the sword and drawing cheers from unlikely corners. Even Eric, the son of U.S. President Donald Trump, tweeted:

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.

Bears Whisper of an Imminent Reckoning

However, not everyone is celebrating. Noted analyst and self-proclaimed ETH skeptic EGRAG CRYPTO revealed a chilling plan: If #ETH / #BTC closes above 0.039 I plan to short the shit out of #ETH. He sees this pump as a potential setup for a massive, portfolio-boosting short opportunity, calling it personal revenge.

Even bullish voices like Michaël van de Poppe are urging caution at these levels: It is a little too risky to be buying $ETH at these highs, he posted on X, advising investors to rotate capital into the ETH ecosystem for better risk/reward.

With ETH now less than 15% below its all-time high and momentum buyers piling in, the $12,000 call no longer seems pure fantasy to the permabulls. Yet, EGRAG’s lurking short and Van de Poppe’s warning about overextended prices should be stark reminders: parabolic moves can end in pain.