Ethereum News Today: Ethereum Nears $4,250 Resistance as Bullish Momentum Builds for Potential $7,200 Surge

Ethereum is approaching a critical price level as it nears the $4,000–$4,250 resistance zone, a threshold that has historically rejected its upward momentum six times over the past 4.5 years [1]. The current price of $3,921.74 reflects strong bullish pressure, with traders and analysts closely watching for a breakout that could trigger a surge toward $7,200 [1]. This level has only been successfully breached once before, following which Ethereum hit an all-time high [1].

According to Merlijn The Trader, Ethereum has completed the Wyckoff cycle’s “Spring” phase and is now entering the “SOS” stage, where market sentiment transitions from skepticism to fear of missing out (FOMO) [1]. This shift is supported by the fact that Ethereum has already cleared the $3,650 “Creek” level, a key resistance that had previously acted as a barrier during both bull and bear markets [1]. The “SOS” stage now marks a decisive moment in the price action, with the $4,250 level serving as a final test of bullish conviction [1].

A successful breakout above $4,250 could shift the market dynamic from cautious optimism to full-scale enthusiasm [1]. Analysts suggest that if Ethereum clears this level without rejection, it may signal the start of a new bullish phase, potentially reaching $7,200 as previously outlined in technical analysis models [1]. However, failure to break through could trigger a pullback toward lower support levels, including $3,650 or even the $2,150 “Test” zone [1].

Satoshi Stacker highlights the historical significance of the $4,000–$4,250 range, noting that it has acted as both a peak and a recovery target in previous cycles [1]. The current test of this level is therefore crucial, as it could determine whether the market continues its upward trajectory or faces a consolidation phase. Analysts warn that rejection at this level could result in a 30% to 75% price correction, mirroring past outcomes [1].

The broader crypto market is also closely watching Ethereum’s performance, as its price movements often influence investor sentiment across the asset class [1]. A strong breakout could serve as a catalyst for renewed risk-taking in the market, while a reversal might prompt a broader reassessment of crypto fundamentals [1].

Ethereum’s current momentum, combined with the technical and psychological significance of the $4,250 level, positions it at a pivotal turning point [1]. Traders are advised to remain vigilant, as the coming weeks could define the trajectory of the next major market cycle.

Source: [1] Ethereum Approaches Key Resistance at $4,250: What Could Follow a Breakout or Reversal?

(https://en.coinotag.com/ethereum-approaches-key-resistance-at-4250-what-could-follow-a-breakout-or-reversal/)