Ethereum News Today: Ethereum Surges 27% in Week, Nears $4,000 Mark

Ethereum (ETH) has reached its highest level in over seven months, currently trading at $3,745 after a 27% gain in the past week. This bullish momentum is primarily driven by significant accumulation from investors, as exchange balances have seen a notable decrease. The price is now just below the key psychological barrier of $4,000, raising questions about whether ETH can sustain this rally or if a correction is imminent.

Data from on-chain trackers shows that since the beginning of July, over 317,000 ETH, worth approximately $1.18 billion, have been withdrawn from exchanges. This sharp decline in exchange supply is a strong bullish indicator, suggesting that investors are opting to hold ETH long-term rather than selling it. Such accumulation behavior typically tightens supply, pushing prices higher. The rising Network Value further supports the bullish sentiment to Transactions (NUPL) ratio, which now approaches the “Belief-Denial” zone — a region historically associated with short-term corrections following euphoric rallies.

The $4,000 level is a well-known psychological and technical resistance zone. Ethereum’s current price action, up nearly 7% from this barrier, puts it within striking distance of a potential breakout. If ETH successfully breaches $4,000, market analysts believe it could trigger further buying pressure, possibly pushing prices to new yearly highs. However, caution remains. The NUPL’s proximity to its critical zone suggests many investors are now in significant profit, and this may lead to profit-taking. If that happens, Ethereum may fail to clear $4,000 and pull back to $3,530. Losing this key support could further drop ETH to $3,131, erasing much of the recent rally.

The next few days will be crucial for Ethereum. Sustained accumulation and bullish market sentiment could fuel a breakout beyond $4,000, reinforcing ETH’s long-term uptrend. On the other hand, any shift toward broader market caution or sudden selling could trigger a temporary correction. At the time of writing, Ethereum remains one of the strongest-performing altcoins in July, reflecting growing confidence in its long-term potential, particularly as decentralized finance (DeFi) and smart contract adoption continue to rise.

Ethereum has confirmed a rounded bottom pattern, breaking through the $3,375 resistance level. This technical formation suggests a potential rise towards the $4,000 mark, as the cryptocurrency continues to gain momentum. The bullish sentiment is further bolstered by a 24% weekly gain, indicating strong buying pressure. Ethereum has held key support levels, positioning itself for a test of the $4,000 resistance. The rising volume and structural support add to the optimism, as market participants anticipate further upside. However, there are potential hurdles that could impede this momentum. Falling network activity and liquidation risks may pose challenges unless addressed.

Despite these risks, Ethereum's recent performance has reshaped market outlook. The cryptocurrency has surged 20% weekly, targeting a $4,000 breakout. This rally is supported by record ETF inflows and a significant increase in on-chain volume over 12 days. These factors contribute to the bullish narrative, as investors continue to pour capital into Ethereum. Currently, Ethereum is trading at $3,704.41, with a 4.27% increase. If bulls can maintain support above $3,690, the upside momentum is likely to extend further. The cryptocurrency's ability to sustain this level will be crucial in determining its path towards the $4,000 mark. Analysts are closely monitoring these developments, as the outcome will have significant implications for the broader cryptocurrency market.