Ethereum News Today: Ethereum Bounces Above $3,800 Reclaiming Key Trendline Toward $4,000

Ethereum (ETH) has recently bounced back above $3,800 after reclaiming a key trendline that analysts believe could signal a potential push toward the $4,000 level. According to a July 31, 2025, chart analysis by Benjamin Cowen, ETH appears to have returned to its long-term ascending channel—a foundational support area—after three previous failed attempts to break past the $4,000 resistance [1].

The chart, based on Kraken exchange data covering weekly price action from mid-2021 to July 2025, highlights three distinct rejections at the $4,000 level. Each time, ETH surged toward the threshold but failed to close above it without first revisiting the lower trendline. This pattern, according to Cowen, is crucial for a potential breakout. The recent price movement shows ETH has once again returned to this “home base,” marked by a green ascending channel, and has bounced off it with strong momentum [1].

This development is interpreted by some traders as a key structural signal. Historically, ETH has needed to retest this trendline before launching a sustained upward move. With the current bounce occurring after a clean return to support, the setup suggests the conditions may now be in place for a break above $4,000. Cowen’s analysis humorously but clearly notes, “ETH should break $4K since it went home,” reinforcing a bullish technical outlook [1].

Community reactions to Cowen’s post on X (formerly Twitter) have been largely positive. The post received over 295,000 views and nearly 6,600 likes, with many users engaging in discussions about whether Ethereum will need to retest further or if the current bounce is enough to break through. One user asked if ETH might need to go “deeper home” before clearing $4,000, to which Cowen responded that the next return to support would likely occur after ETH reaches new all-time highs [1].

The $4,000 level remains a significant psychological and technical barrier for Ethereum. In early 2022 and again in early 2024, ETH approached this level but failed to close above it, leading to sharp corrections. Unlike those instances, the current price action is supported by a return to the long-term ascending trendline, which is seen as a prerequisite for a successful breakout in many technical models [1].

If Ethereum does manage to break through $4,000 in the coming days or weeks, it will need to hold above that level to confirm the bullish setup. Continued strength in volume and broader crypto market conditions will be critical in determining whether this move is sustainable. The market is now closely watching to see if the return to the trendline was indeed the missing step in ETH’s long-term price narrative [1].

Source: [1] Ethereum Hitting $3.8K After Reclaiming Trendline That Signals $4K Push https://cryptonewsland.com/ethereum-3-8k-reclaiming-that-signals-4k-push/