Ethereum News Today: Ethereum Eyes $4,000 Breakout After 8% Gains on Key Support Retest

Ethereum (ETH) traders and analysts are closely monitoring potential price action ahead of a potential $4,000 breakout, with many anticipating a retest of key support levels before a sustained rally. Recent price behavior suggests ETH is consolidating near $4,000, where consistent selling pressure has limited upward momentum. Independent analyst Adam highlighted "sell walls" in this zone, noting that while ETH has regained strength, "its price could lose momentum until these are either filled or pulled." A confirmed inverse-head-and-shoulders pattern on higher time frames points to a target of $4,300, but funding rates remain neutral, indicating caution among leveraged traders near multi-year resistance [1].

Technical analysis reinforces the likelihood of a temporary pullback. Analyst Michael Van de Poppe argued that liquidity on the long side is "ready to be taken," predicting a brief retrace to the $3,500–$3,300 range before a breakout. This aligns with broader market sentiment, as Ethereum has tested $3,500 multiple times recently, recovering nearly 8% in late July after a 5% supply reduction from over 6 million ETH burned or lost permanently [2]. Institutional buying, including spot ETH ETF inflows exceeding $1.84 billion in the past week and corporate treasuries adding 927,600 ETH since June, further underscores demand despite short-term volatility [3].

On-chain data highlights Ethereum’s structural strength. Farside Investors reported that spot ETFs now hold over $20.6 billion in assets, driven by purchases from entities like Bitmine Immersion Tech and SharpLink Gaming. However, shares of these companies have declined in recent weeks, a contrast to their earlier gains of over 300% since April. This divergence underscores the complexity of balancing bullish fundamentals with market psychology [4].

The broader crypto market context adds nuance to ETH’s trajectory. While Bitcoin’s consolidation near $120,000 has influenced altcoin dynamics, Ethereum’s supply-side developments—such as its approaching 10-year anniversary on July 30—have drawn attention as potential catalysts. CoinDCX analysts drew parallels between ETH’s July 2025 performance and Bitcoin’s 2021 bull run, framing $4,000 as a critical target [5]. Nevertheless, macroeconomic uncertainty, including the Federal Reserve’s upcoming FOMC meeting, remains a wildcard [6].

Analysts emphasize that a successful retest of $3,500–$3,300 would validate the asset’s resilience and set the stage for a test of $4,000. Mitrade noted that ETH’s ability to hold daily support at $3,500 has already enabled an 8% recovery in early August, reinforcing confidence in its near-term outlook [7]. Yet, caution persists, with some observers flagging the possibility of a deeper pullback mirroring Bitcoin’s historical patterns [9].

As the market weighs technical indicators and institutional activity, Ethereum’s path hinges on maintaining key support levels while navigating macroeconomic risks. The coming weeks will likely clarify whether the $4,000 threshold is a temporary ceiling or a launchpad for a broader rally.

Sources:

[1] [Ethereum's 5% supply reduction 6 mln ETH burned] https://www.ainvest.com/news/ethereum-news-today-ethereum-5-supply-reduction-6-mln-eth-burned-lost-fuels-4k-push-price-tests-3-800-resistance-2507/

[2] [ethereum/usd tether perpetual swap contract] https://www.tradingview.com/symbols/ETHUSDT.P/ideas/?exchange=BLOFIN

[3] [Ethereum Price Prediction: ETH Price in 2025,2026,2027] https://coindcx.com/blog/price-predictions/ethereum-price-weekly/

[4] [Crypto price today: Bitcoin consolidates after weekend rally] https://www.bitcoininsider.org/article/280645/crypto-price-today-bitcoin-consolidates-after-weekend-rally-altcoins-shed-gains-eth

[5] [Top 3 Price Prediction: Bitcoin, Ethereum, Ripple –BTC ...] https://www.mitrade.com/insights/news/live-news/article-3-990554-20250728

[6] [Crypto Charts 5 Minutes] https://finviz.com/crypto_charts.ashx?p=i5

[7] [Bitcoin News Today: Bitcoin Weekly Close Above ...] https://www.ainvest.com/news/bitcoin-news-today-bitcoin-weekly-close-119-200-triggers-bullish-outlook-analysts-predict-3-gains-time-high-2507/

[9] [Ethereum's 5% supply reduction 6 mln ETH burned] https://www.ainvest.com/news/ethereum-news-today-ethereum-5-supply-reduction-6-mln-eth-burned-lost-fuels-4k-push-price-tests-3-800-resistance-2507/