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Ethereum’s price movement has drawn renewed focus on the $4,000 level, a critical psychological threshold that is gaining attention in both spot and derivatives markets. Traders and analysts are closely watching the level, as it represents a potential turning point for Ethereum’s price trajectory and could influence risk positioning among hedge funds and options buyers. If the price manages to break above $4,000, it would likely signal a shift in market momentum and could lead to further gains [1].
Recent price action shows
rising from approximately $1,700 in early 2025 to $3,900, with a 48% gain recorded in the past month. This upward trend has built a strong narrative around the possibility of a new all-time high, with the $4,000 level serving as the first major resistance. A confirmed breakout could push the price toward $4,220 and potentially as high as $4,800, according to Fibonacci projections [2].The price of Ethereum has also shown correlation with rising M2 money supply, with liquidity levels appearing to support its upward movement. Long-term investors and institutional buyers have continued to accumulate ETH during pullbacks, reflecting confidence in the asset’s fundamentals. Some analysts suggest that Ethereum has demonstrated greater resilience than
during market corrections, with smaller sell-offs and consistent buying interest even in bearish phases [1].From an options market perspective, the $4,000 level is particularly significant. It represents a key inflection point where current hedge fund positions may begin to face losses, while options buyers positioned for a bullish outcome stand to benefit. This dynamic could create a self-fulfilling cycle if the price manages to clear the level, reinforcing upward momentum [1].
Michael van de Poppe, a well-known analyst in the crypto space, has suggested that a breakout above $4,000 is imminent and could signal the start of a broader market rally. Technical indicators support this view, as Ethereum remains firmly above its 50-day moving average [4]. Analyst Tom Lee has also forecast that Ethereum should at least revisit the $4,000 level based on its historical ETH/BTC ratio and current market conditions [5].
The market remains highly focused on whether Ethereum can sustain a move above $4,000. Sustained strength past this level would likely bring attention to the next key resistance at $4,200 and beyond. This potential price movement is not just being viewed as a short-term rally, but as a broader repositioning of market sentiment regarding Ethereum’s role in the evolving crypto and financial landscape [2].
Sources:
[1] title: Ethereum Tracks M2 Liquidity as M2 Prints Another High, ETH Accumulators Double Down
url: https://cryptonewsland.com/ethereum-tracks-m2-liquidity/
[2] title: Ethereum Nears $4000 Breakout With 48% Monthly Gain
url: https://www.ainvest.com/news/ethereum-news-today-ethereum-nears-4-000-breakout-48-monthly-gain-2508/
[3] title: This Big Ethereum News Could Push ETH Above $4000 Fast
url: https://cryptorank.io/news/feed/0fa1f-this-big-ethereum-news-could-push-eth-above-dollar4000-fast
[4] title: Why Crypto Is Going Up? Bitcoin, Ethereum,
and ...url: https://www.tradingview.com/news/financemagnates:56edec20c094b:0-why-crypto-is-going-up-bitcoin-ethereum-xrp-and-dogecoin-prices-today-lead-broad-rally/
[5] title: Ethereum's Top TA Master: Why Is ETH Said to Reach ...
url: https://www.theblockbeats.info/en/news/59259

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