Ethereum News Today: Ethereum Surges 27% to 7-Month High, Faces $4,000 Breakout or $3,130 Drop

Ethereum (ETH) has recently shown a significant recovery, approaching its all-time high price after a sharp decline in early 2025. The market generally anticipates that Ethereum will continue its upward trajectory. However, one analyst has warned that if Ethereum fails to surpass $4,000, the price could drop to $3,130.

Crypto analyst Wise Crypto noted that Ethereum has entered the “Belief-Denial” phase on its net unrealized profit/loss (NUPL) chart. This phase typically occurs after a substantial price increase but before the market reaches its peak. Historically, this zone has preceded market corrections, where investors start taking profits.

According to the analyst, Ethereum is at a critical juncture. A clear breakout above $4,000 could trigger a new rally. Conversely, if this level is not maintained, the price could retreat to $3,530, or even $3,130 if support levels break. Ethereum surged 27% in a week to reach a 7-month high of $3,745, with investors pulling more than $317,000 worth of ETH from exchanges, signaling strong accumulation and an upward trend.

Despite the rally, Ethereum is entering the “Belief-Denial” zone on the NUPL chart, a historic signal of possible corrections as investors begin taking profits. If Ethereum breaks above $4,000 at this point, a new upward wave could begin. However, a potential failure could trigger a pullback to $3,530 or even $3,130.

In summary, the analyst's bullish scenario for Ethereum involves a breakout above $4,000, leading to a new rally. The bearish scenario, on the other hand, involves a failure to maintain this level, resulting in a pullback to $3,530 or $3,130. The current market conditions and historical data suggest that Ethereum is at a pivotal moment, with both bullish and bearish outcomes possible depending on its ability to surpass the $4,000 mark.