Ethereum News Today: Ethereum Surges 29.77% Past $4,000 Resistance to $4,537.76

Ethereum has broken through the $4,000 resistance level after seven unsuccessful attempts, marking a pivotal moment in its price trajectory. The breakout came with a decisive candle showing a 29.77% gain, propelling the price to $4,537.76. This move represents one of the most significant breakouts in recent years and signals a technical realignment in Ethereum’s market structure [1]. The $4,000 level, previously a robust resistance, is now expected to act as support, with analysts suggesting a potential retest above $4,000–$4,350 could reinforce the bullish momentum [1].

The long-standing resistance had previously seen sharp declines following failed tests, with each rejection reinforcing its significance. However, the seventh attempt was different—Ethereum surged past the level with strong buyer participation, indicating a shift in market sentiment and positioning [1]. The successful breakout has led analysts to project potential movement toward $7,000–$11,000, assuming the current momentum continues [1]. These price targets align with historical patterns where Ethereum has entered phases of accelerated growth after breaking multi-year barriers [1].

Further support for the bullish narrative comes from on-chain data. Exchange balances for Ethereum have dropped to a nine-year low of 14.88 million ETH, with nearly $2 billion in ETH withdrawn in the past week alone. This decline reflects a trend that began in 2020, as balances have steadily contracted while the price surged from under $200 to over $4,500. Lower exchange balances typically indicate increased staking, self-custody, or DeFi participation, reducing immediate selling pressure and reinforcing the breakout’s strength [1].

The tightening supply on exchanges contrasts with earlier cycles, where supply and price trends often moved in tandem. Now, accumulation appears to coincide with sustained price increases, a structural change that could provide further support for Ethereum’s upward move. If this trend persists, the $4,000 breakout could gain additional strength from continued supply contraction [1].

Analysts also highlight that a successful consolidation phase above the breakout zone could serve as a buffer, allowing the market to absorb gains before another upward move. This pattern has been observed in previous Ethereum cycles, where consolidation periods precede renewed bullish phases [1]. With Ethereum having broken above a key psychological level, the path to new highs appears more accessible, though traders are urged to remain cautious given the market’s inherent volatility [2].

According to market analysts, if Ethereum manages to maintain its position above $4,500, the next major target would be $5,500—a historically significant level. A sustained move beyond that could clear the way for $7,000 and potentially higher [2]. With growing institutional interest and ongoing upgrades to the Ethereum network, the foundation for continued appreciation appears strong [2].

Source:

[1] Cryptofront News (https://cryptofrontnews.com/ethereum-escapes-4000-barrier-after-seven-rejections-eyes-fresh-highs-above-7000/)

[2] US & Global Economy News (https://todayinusandworld.com/today-in-us-and-world/f/us-global-economy-news)