Ethereum News Today: Ethereum Eyes $4,000 Mark Amid Whale Accumulation and Network Concerns

Ethereum is currently eyeing the $4,000 mark, driven by a bullish breakout and significant whale accumulation. However, several risks could hinder its momentum, including falling network activity and liquidation pressures. Analyst Captain Faibik predicts a near-term push to the $4,000 level following ETH’s break above descending resistance. This structure shift indicates a possible continuation phase, but the price now faces a critical test. Holding above $3,500 could strengthen momentum, but ETH must overcome local selling pressure and maintain buying strength to complete the breakout with a sustained push.

SharpLink Gaming has been aggressively accumulating Ethereum, recently adding 4,904 ETH worth $17.45 million. Since July 1st, the firm has acquired a total of 157,140 ETH, valued at $493 million, with an average purchase price of $3,136 per ETH. This consistent buying signals strong institutional confidence in Ethereum’s long-term potential. However, if ETH fails to break above $4,000 and whale inflows slow or reverse, the rally could lose momentum. Continued buying from major entities like SharpLink will be crucial for absorbing sell pressure and driving ETH past the key psychological resistance level.

The Realized Cap HODL Waves (1d–7d) surged to 3.22, highlighting increased activity among short-term holders. These market participants tend to respond quickly to volatility, often exiting positions for short-term gains. While this behavior can drive momentum during rallies, it also increases downside risk during resistance tests. If Ethereum approaches $4,000 and fails to break through, these holders may accelerate a pullback. Therefore, although their participation helps fuel price surges, Ethereum’s ability to hold gains likely depends on whether long-term holders step in to stabilize the market if sentiment shifts.

Ethereum’s core network activity has dropped sharply, raising concerns about sustainability. On July 19th, the transaction count fell to 522K, and network growth plummeted to just 49.6K—the lowest in over six months. This dual decline reflects both waning engagement from existing users and stalled onboarding of new participants. While prices push higher, such divergence often signals weakness beneath the surface. Without fresh demand and usage, ETH’s rally may lack the foundation to extend. Therefore, a rebound in both metrics will be essential if Ethereum hopes to maintain its trajectory toward $4,000.

Binance’s liquidation heatmap reveals dense clusters between $3,800–$4,000, with over $46.65 million in leveraged positions concentrated in that zone. These areas act as traps—if the price rallies too fast into them, liquidations can cascade and reverse momentum. However, if bulls manage to absorb the volatility and ETH stabilizes above $3,800, the zone could trigger a breakout instead. Therefore, Ethereum’s response to this liquidity pocket will determine short-term direction. Volume and order book behavior around this range will be key indicators to watch in the coming sessions.

Ethereum’s breakout, whale demand, and market structure suggest it could push past $4,000. However, drastic drops in network growth and user activity weaken the rally’s foundation. Meanwhile, liquidation risks at resistance heighten volatility. If buyers maintain strength and volume stays consistent above $3,800, a successful breakout remains possible. But without a recovery in on-chain usage, Ethereum may struggle to hold gains. Therefore, ETH must pair price momentum with user growth to secure a meaningful advance beyond $4K.