Ethereum News Today: Ethereum Consolidates Near $4,405 Amid Key Support and Resistance Levels

Ethereum’s price action has drawn mixed interpretations from analysts, as the asset remains near its key resistance level of $4,800 without a clear breakout. The recent attempt to surpass its all-time high has failed, triggering a 9% pullback into the $4,200–$4,800 consolidation range [1]. This sideways movement has sparked debates over whether the bullish momentum has waned or is merely pausing ahead of a stronger rally.

Technical analysis indicates that Ethereum remains within a defined range, with $4,200 serving as a primary support level. A sustained break above $4,800 could reignite the bullish narrative, potentially targeting $5,000 and beyond. Conversely, a breakdown below $4,200 could expose the ascending price channel’s midline as the next level of interest [1]. On the 4-hour chart, bearish divergence on the RSI reinforces the likelihood of a short-term pullback [1].

From a sentiment perspective, Ethereum’s volatility has been driven by liquidity-driven trading, with liquidation clusters forming above $4,800 and below $4,200. This dynamic suggests a range-bound scenario in the near term, with traders advised to remain cautious of false breakouts and liquidity traps [1]. The price currently trades near $4,405, showing resilience despite recent declines [3].

BlackRock has raised its Ethereum price forecast, now predicting a price of $7,500 by the end of 2025, up from a previous target of $4,000 [1]. This update reflects growing institutional confidence in Ethereum’s fundamentals and its potential for broader adoption. Similarly, Barchart.com analysts have highlighted the potential for a $12,000 rally, though they also point to the growing influence of Layer 2 projects in shaping capital flows within the Ethereum ecosystem [4].

Positive on-chain activity has also been reported, with Ethereum’s smart money players absorbing retail selling pressure, a trend often seen before consolidation phases and subsequent bullish moves [2]. The DeFi TVL has shown a notable increase, reinforcing Ethereum’s role as the dominant platform for decentralized applications [7].

However, the market has not been without risks. Recent sharp corrections led to over $1 billion in liquidations in a single session, underscoring the dangers of leveraged trading in a volatile environment [6]. Ethereum’s spot-futures premium has also hit a new high since March 2024, signaling potential for further corrections, especially in the context of macroeconomic uncertainty [6].

Despite these risks, the broader technical picture suggests that Ethereum’s uptrend remains intact. Analyst @cas_abbe has noted that a consolidation phase is expected, with a potential dip to $4,100–$4,200 before another all-time high attempt [8]. This view is supported by broader sentiment that a temporary consolidation is necessary before a new phase of momentum can emerge [1].

As Ethereum continues to test key resistance and support levels, the focus for investors will remain on whether institutional buying, DeFi growth, and Layer 2 developments can sustain the current rally. The next few months will be pivotal in determining whether the bullish narrative holds or if Ethereum faces a prolonged correction.

Source:

[1] CoinMarketCap (https://coinmarketcap.com/community/articles/68a0cdff8b77843f0636d3b6/)

[2] Blockchain News (https://blockchain.news/flashnews/eth-whales-absorb-retail-selling-smart-money-buying-mirrors-btc-move-bullish-signal-for-traders)

[3] Mitrade (https://www.mitrade.com/insights/news/live-news/article-3-1045481-20250816)

[4] Barchart.com (https://www.barchart.com/story/news/34205541/ethereum-price-prediction-eth-poised-for-12-000-rally-but-layer-brett-emerges-as-the-game-changing-eth-l2)

[6] FUTU (https://news.futunn.com/en/post/60673101/night-of-terror-bitcoin-and-ethereum-lead-the-market-crash)

[7] Crypto Economy (https://crypto-economy.com/forget-solana-and-ethereum-this-might-be-the-crypto-most-added-to-portfolios-this-week/)

[8] Blockchain News (https://blockchain.news/flashnews/ethereum-eth-uptrend-intact-sideways-consolidation-and-possible-4-1k-4-2k-dip-before-new-ath-says-cas-abbe)