Ethereum News Today: Ethereum Price Rises 5.26% as Supply Reduction Fuels $4,000 Breakout Speculation

Ethereum’s price has regained traction above the $3,800 threshold, reigniting speculation about a potential breakout toward $4,000 [1]. The cryptocurrency has shown early signs of bullish momentum, with traders and analysts closely monitoring key resistance levels as the market weighs in on Ethereum’s supply dynamics and institutional adoption. Recent movements suggest that the path to $4,000, a level previously tested multiple times, could finally be within reach.

The renewed optimism stems partly from a shrinking supply of Ethereum in circulation. Over 6 million ETH tokens have been permanently removed from the supply through network activity, creating a deflationary pressure that analysts argue could support a stronger price surge [3]. This scarcity narrative has added fuel to the market’s upward trajectory, particularly as Ethereum faces renewed attempts to breach $3,800—a critical resistance zone. While past efforts to surpass this level have faltered, current positioning appears more balanced, with neither extreme bullishness nor bearishness dominating the sentiment [2].

Technical indicators reinforce the potential for a breakout. Ethereum’s price is trading above $3,820 and the 100-hourly Simple Moving Average, while a key bullish trend line with support at $3,800 is forming on the hourly ETH/USD chart [1]. On the upside, resistance levels at $3,900, $3,920, and $3,950 are critical hurdles. A clear move above $3,950 could push the price toward $4,000, with further gains potentially extending to $4,200 in the near term [1]. The RSI for ETH/USD has crossed above the 50 zone, and the MACD is gaining momentum in the bullish zone, signaling sustained buying pressure [1].

A successful breakout above $4,000 would not only validate the current bullish thesis but also trigger broader market implications. Analysts note that Ethereum’s price movements are increasingly influenced by macroeconomic trends and institutional capital flows, mirroring Bitcoin’s trajectory toward mainstream adoption [4]. A Bitcoin rally above $120,000 could amplify cross-asset demand, creating a tailwind for Ethereum [4]. Conversely, a failure to clear $3,920 resistance could trigger a downside correction, with key support levels at $3,820, $3,800, and $3,700 acting as potential safe havens [1].

Market observers have highlighted the cascading effects of a sustained Ethereum rally. A breakout past $4,000 could spark renewed risk appetite in the altcoin space, with smaller cryptocurrencies benefiting from a broader market shift [5]. However, such a scenario depends on Ethereum maintaining its gains and avoiding a pullback into the $3,800 range, which has historically acted as a psychological barrier [1].

While the supply crunch and institutional interest present strong tailwinds, external factors such as regulatory developments and macroeconomic volatility could disrupt the trajectory. Analysts caution that the market remains in a “wait-and-see” mode, with the next weekly close above $4,000 deemed a critical milestone for confirming the breakout’s legitimacy [6]. A sustained move above $4,100 could further unlock upward momentum, though immediate volatility remains a factor [6].

The market’s focus is now squarely on the $4,000 psychological level. A breakout here would not only validate the current bull case but also signal a shift in Ethereum’s role within the broader crypto ecosystem. Whether this attempt sticks will ultimately depend on the interplay of supply-side fundamentals, institutional demand, and the broader market’s risk appetite—a dynamic that remains as fluid as ever in the fast-moving crypto landscape.

Source: [1] [Ethereum Price Eyes $4K Again – Will This Be the Breakout That Sticks?](https://www.newsbtc.com/analysis/eth/ethereum-price-eyes-4k/)

[2] [Ethereum Price Analysis: Is ETH Gearing Up for a Surge to $4K?](https://cryptopotato.com/ethereum-price-analysis-is-eth-gearing-up-for-a-surge-to-4k/)

[3] [6 mln ETH Gone Forever: Will Shrinking Supply Fuel Ethereum’s $4K Run?](https://ambcrypto.com/6-mln-eth-gone-forever-will-shrinking-supply-fuel-ethereums-4k-run/)

[4] [Bitcoin Nears $120K As Ethereum Eyes $4K Breakout](https://www.tronweekly.com/bitcoin-nears-120k-as-ethereum-eyes-4k-break/)

[5] [Ethereum News Today: $4K Threshold Triggers 979M Short Liquidation Risk](https://www.ainvest.com/news/ethereum-news-today-ethereum-4-000-threshold-triggers-979m-short-liquidation-risk-cexs-2507/)

[6] [Ethereum’s Future Outlook Brightens as Traders Eye $4K Close](https://bravenewcoin.com/insights/ethereum-eth-price-prediction-eth-eyes-massive-rally-beyond-ath-as-nasdaqbtc-ceo-sees-institutional-surge-like-bitcoin)