Ethereum News Today: Ethereum Climbs 1.74% as Short Liquidations Drive Push Toward $3,900–$4,000 Resistance

Ethereum (ETH) has climbed 1.74% in the last 24 hours, positioning itself near critical resistance levels between $3,900 and $4,000. This upward movement, observed on July 27, 2025, reflects sustained buying pressure and technical alignment favoring a potential breakout. Analysts note that maintaining support above $3,675 remains essential for sustaining the bullish trajectory, as this level has held firm in recent trading sessions [1]. A close above the $3,824 daily resistance level could trigger a test of the $3,900–$4,000 range, according to COINOTAG’s analysis [1].

The recent price surge has also impacted derivatives markets, with $104.76 million in short liquidations recorded as traders scrambled to cover positions following ETH’s breach of $3,800 on July 25, 2025 [1]. This liquidity event intensified upward momentum, creating a self-reinforcing cycle as bearish bets collapsed. Concurrently, declining Ethereum exchange reserves—monitored by CryptoQuant—signal reduced institutional selling and growing retail participation, aligning with historical precedents where such trends precede price appreciation [3].

Technical indicators reinforce the near-term bullish outlook. Hourly charts show ETH approaching key resistance, with buyers demonstrating control if the $3,824 threshold is breached [1]. Midterm analysis highlights Ethereum’s ability to hold above $3,675, increasing the likelihood of a push toward $4,093 [1]. However, longer-term projections, such as a $4,735 average market price by year-end, remain speculative and contingent on macroeconomic stability [4].

The interplay between declining over-the-counter inventory and institutional buying activity underscores Ethereum’s current inflection point. While short-term dynamics favor continuation of the rally, external risks—such as regulatory interventions or broader market corrections—could disrupt the trajectory [4]. Market participants are advised to monitor volume trends, moving averages, and RSI levels to gauge momentum sustainability, alongside expert analyses for context [1].

A successful breakout above $3,900 would not only validate the $4,000 psychological level as a near-term target but also signal renewed investor confidence in Ethereum’s utility and ecosystem developments. However, sustained momentum requires consistent buying pressure and avoidance of key support level breaches. As the cryptocurrency approaches these critical thresholds, traders must balance technical cues with broader market sentiment to navigate potential volatility.

Sources:

[1] [Ethereum Surpasses $3800 Triggering $104.76M Short Liquidations](https://www.ainvest.com/news/ethereum-news-today-ethereum-surpasses-3-800-triggering-104-76m-short-liquidations-eyes-9-8-rally-4-000-2507/)

[2] [ETHUSDT_F9878A.USD Trade Ideas](https://www.tradingview.com/symbols/ETHUSDT_F9878A.USD/ideas//page-2/?asset=base)

[3] [Ethereum Price Analysis: Exchange Reserves Declining](https://blockchain.news/flashnews/eth-price-analysis-ethereum-eth-prepares-to-surpass-4-000-resistance-level)

[4] [Ethereum Price Prediction 2025–2031](https://www.cryptopolitan.com/ethereum-price-prediction/)