Ethereum News Today: Ethereum Consolidates Near $3,730 as Bulls Target $4K Breakout Amid Bullish On-Chain Metrics

Ethereum’s recent price action has positioned the cryptocurrency at a pivotal juncture as it consolidates near the $3,730 level, just below the $4,000 psychological barrier. The asset’s ascent from the $2,500 range has drawn attention to its technical structure and on-chain metrics, with analysts debating whether the current momentum is sufficient to breach critical resistance levels. On the daily chart, ETH has maintained dominance above both the 100-day and 200-day moving averages, which have turned upward following a bullish crossover around $2,500. This pattern suggests a sustained uptrend, though the next major resistance at $4,100 remains untested [1]. A breakdown below the $3,300 support could trigger further corrections toward $2,900, according to technical assessments [1]. The Relative Strength Index (RSI) on the daily chart hovers near 78, indicating overbought conditions, yet no significant reversal has materialized, implying buyers remain in control [1].

On shorter timeframes, the 4-hour chart reveals a descending triangle forming near $3,800, with RSI rebounding from the 50 level to 56. This suggests a mild recovery in momentum, and a breakout above the trendline could catalyze another rally. However, a breakdown below $3,500 would reintroduce pressure toward the $3,200 zone [1]. Meanwhile, on-chain data highlights a multi-year low in Ethereum exchange reserves at 19.3 million ETH, signaling reduced selling pressure as holders shift assets to cold storage, staking, or decentralized finance (DeFi) platforms. This trend has persisted even as prices approached $3,800, reinforcing the narrative of long-term accumulation [1].

Market dynamics have intensified in mid-July, with ETH surging past $2,650 and $2,800 before reaching $3,815. However, the rally has since cooled, and the token dipped below $3,700 by July 23, sparking debates about the sustainability of bullish momentum. The cryptocurrency’s position above its 200-day EMA remains a bullish signal, though a critical test near $3,600 looms. A successful retest of this level could reignite buying pressure, while a breakdown might trigger liquidations and deeper declines [2]. Institutional activity has added a layer of complexity: on-chain data shows $2.6 billion in Ethereum added by large investors over the past week, with Sharplink’s $259 million accumulation underscoring growing confidence. New ETF inflows further support the bullish case, though analysts caution that speculative buying must be sustained to validate the trend [2].

Key price levels remain under scrutiny. The $3,600 support zone poses a significant risk, with heavy liquidation potential should bulls fail to defend it. A retreat toward $3,300 or $3,000 is possible in such a scenario [2]. Conversely, a confirmed close above $4,000 would invalidate bearish narratives and signal a broader crypto bull market, particularly for Ethereum, which has outperformed Bitcoin in recent weeks [3]. Bitcoin’s consolidation above $118,000 adds another variable, as cross-asset correlations often influence Ethereum’s trajectory.

Retail sentiment is divided, with some traders viewing $4,000 as a realistic short-term target, while others warn of macroeconomic risks, including regulatory shifts. A 2.08% decline in ETH’s 24-hour price underscores the fragility of the current rally [4]. Analysts emphasize that retesting and holding above $3,700 will be crucial for the next move. For now, the market is in a consolidation phase, with both bulls and bears poised to react to volatility.

Sources:

[1] [Ethereum Price Analysis: Is ETH Ready to Break Through the $4K Barrier?](https://coinmarketcap.com/community/articles/688374162fb07463b9e43850/)

[2] [ETH Rally Cools, Can it Dodge a Major Correction?](https://www.newsbreak.com/news/4127973253764-ethereum-price-analysis-eth-rally-cools-can-it-dodge-a-major-correction)

[3] [Bitcoin Price Outlook – Bitcoin Continues to Pressure 120K](https://www.fxempire.com/forecasts/article/bitcoin-price-outlook-bitcoin-continues-to-pressure-120k-1535999)

[4] [Manuel - Crypto Market Crashes Amid Trump's Threat...](https://m.facebook.com/manuel.guevarra.369210/photos/crypto-market-crashes-amid-trumps-threat-to-increase-tariffsthe-crypto-market-is/727766110136600/)