Ethereum News Today: Ethereum Breaks $3,375 Resistance, Eyes $4,000 Mark

Ethereum has recently confirmed a rounded bottom pattern, breaking through the $3,375 neckline, which suggests a potential rise towards the $4,000 mark. This pattern, which has been forming since mid-March, indicates a shift from a long-term decline to sustained bullish momentum. The breakout was supported by a strong bullish candle, and the price has remained above the $3,200 level, confirming the strength of the breakout.

The Relative Strength Index (RSI) shows early signs of weakness, with a bearish divergence forming as the price makes new highs while momentum weakens. However, the RSI remains above the mid-level, indicating that Ethereum is still in bullish territory. This divergence does not invalidate the rounded bottom structure but introduces caution in the immediate term. A retest of the breakout zone near $3,200 would not break the bullish trend but would reinforce the neckline as a confirmed support level.

Ethereum may face resistance near $3,680 and $3,920 before reaching the $4,000 level. The chart projection indicates a stair-stepped path toward this level, with intermittent resistance at these points. If Ethereum remains above $3,200, bulls may maintain control, and the bullish path laid out by the rounded bottom formation may unfold as projected. The $4,000 level could act as both a magnet and resistance point, with RSI and volume conditions around this price determining whether ETH can push through or retrace.

Throughout April and May, Ethereum oscillated within a tight horizontal range between $2,800 and $3,200, acting as an accumulation zone where price found consistent support. The breakout through $3,200 in July was accompanied by a strong bullish candle, confirming the pattern’s breakout condition. The green diagonal trendline shows long-term upward momentum, providing a base for the rounded structure. This support remained intact during multiple retests, and the convergence of the green trendline and neckline formed a key inflection point from which Ethereum launched higher.

Volume during the breakout phase increased moderately, adding validity to the bullish continuation scenario. Market participants appear to have responded to this breakout with new buy interest, signaling a shift in sentiment. The chart outlines a projected parabolic move with higher highs forming through July and August. This trajectory shows price possibly entering a short-term consolidation above $3,600 before resuming its rise. This step-by-step progression mirrors historical Ethereum rallies.