Ethereum News Today: Ethereum Nears $4K Resistance as 2017 Technical Setup Repeats

Ethereum’s price movement in 2025 is drawing comparisons to its 2017 rally, with technical indicators suggesting a potential breakout above the $4,000 resistance level. A weekly chart comparison by Merlijn The Trader shows that Ethereum has reclaimed the 50-period moving average after a prolonged consolidation phase—mirroring the setup that preceded a sharp price increase in 2017. This pattern suggests that the market may be building momentum for another significant upward move [1].

Current price action closely follows the 2017 setup “bar for bar,” with Ethereum approaching the $4,000 level where a breakout could trigger rapid price appreciation [1]. The 2017 rally was characterized by a breakout after reclaiming the 50 MA, leading to a strong move beyond the $12–$14 resistance range. In 2025, similar conditions are in place, though the market environment is different. Institutional investment, ETF inflows, and limited supply are now key factors supporting Ethereum’s upward trajectory [1].

Market data indicates that open interest and funding rates are rising in line with price movements, suggesting a healthy growth trend without signs of speculative excess. According to Daan Crypto Trades, open interest is increasing steadily but not at an alarming rate. This suggests that the current rally is supported by genuine buying pressure rather than excessive leverage or instability [1]. Funding rates are also trending upward, a typical sign of increased market activity during a strong bullish phase.

The recent price surge has also triggered a short squeeze, with over $183 million in short positions liquidated as Ethereum neared $4,200. This development has added to the upward momentum, catching many short sellers off guard [2]. Chart analysts on TradingView have noted a wedge pattern in Ethereum’s price action, which often precedes a breakout. However, caution is advised, as wedge patterns can also signal a potential pullback, especially if key support levels are tested [4].

Ethereum’s broader rally has also been fueled by improved regulatory clarity, particularly in the United States. The SEC’s recent approval of liquid staking products has contributed to a broader rise in Ethereum and layer-2 protocols. This regulatory development has enhanced market confidence and attracted more institutional interest, which analysts believe could support a stronger and more sustained upward trend [3].

With technical patterns aligning with past performance and strong market conditions in place, Ethereum’s position above the 50 MA and its proximity to the $4,000 resistance level are drawing close attention. A clean breakout above this level could confirm the start of a new bull trend, potentially leading to significant price appreciation.

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Source:

[1] Ethereum Price Action Tracks 2017 Setup, Eyes Breakout Above $4K Resistance. (2025, August 9). [cryptofrontnews.com](https://cryptofrontnews.com/ethereum-price-action-tracks-2017-setup-eyes-breakout-above-4k-resistance/)

[2] $183 Million in Shorts Liquidated as ETH Nears $4200. (2025, July 30). [coinedition.com](https://coinedition.com/ethereum-short-squeeze-183-million-liquidated-eth-nears-4200/)

[3] SEC Green Light on Liquid Staking Sends ETH Past $4K, Spurs Broad Staking and Layer-2 Rally. (2025, August 7). [coindesk.com](https://www.coindesk.com/)

[4] Trend Analysis — Trading Ideas on TradingView. (2025, August 9). [tradingview.com](https://www.tradingview.com/ideas/trendanalysis/)