Ethereum News Today: Ethereum Surges 33% in Three Weeks, Eyes $4,000 Mark

Ethereum (ETH) has recently surged past $3,700, capturing the attention of investors and analysts alike. The cryptocurrency's price action shows a strong bullish momentum, with the Relative Strength Index (RSI) deep in the overbought zone and Heikin Ashi candles closing higher, indicating a robust upward trend. The question on everyone's mind is whether Ethereum can break the $4,000 mark this week or if a correction is imminent.

The recent price movement of Ethereum from the $2,800 range to over $3,700 has been swift and driven by momentum traders and institutional accumulation. The Heikin Ashi candles on the daily chart show consistent upward momentum with no visible upper shadows in the last six sessions, a powerful sign of trend strength. This bullish structure is backed by strong momentum and institutional interest, which has fueled the recent surge.

The RSI currently reads 86.13, which is well above the traditional overbought threshold of 70. This signals two key points: Ethereum is incredibly strong in the current trend, and a short-term pullback or consolidation is likely. However, it is important to note that RSI can remain overbought during strong bull markets, as seen in 2021. Therefore, traders must combine this with price action analysis rather than treat it as a standalone sell signal.

Ethereum price has blasted through multiple Fibonacci retracement zones, including the 61.8% Fib (approximately $3,200) and the 78.6% Fib (approximately $3,500), which has now flipped into support. The next key level to watch is the $3,950 – $4,000 zone. This level is not just a psychological resistance but also aligns with the Fibonacci extension and prior all-time high rejection zones. If bulls can push ETH price beyond this mark, we could see rapid acceleration toward $4,200.

Looking ahead, the next move for Ethereum can be estimated using the most recent leg of the price action. The previous swing low was at $2,400, and the current high is at $3,799, giving a range of $1,399. Assuming a breakout continuation above $3,800, the first target would be $5,199 (100% extension), and the second target would be $4,664 (61.8% extension). However, the $4,000 mark remains the most immediate hurdle to watch for this week.

Given the rapid price increase of nearly 33% in less than three weeks and the overbought RSI, there is a possibility of a pullback to support near $3,500 – $3,600 or a sideways consolidation that resets the RSI before the next move. If the Ethereum price holds above $3,500, bulls retain full control. A drop below $3,200 would invalidate the bullish structure and open doors to $2,800 again.

Based on the current price momentum and lack of strong resistance until the $4,000 zone, Ethereum price can hit $4,000 this week. However, traders should prepare for short-term volatility. A wick above $4,000 followed by rejection is a real possibility, especially given the current RSI extremes. The current ETH price is $3,731, with an immediate target of $4,000 and a support zone of $3,500 – $3,600. The next bullish target is $4,664 – $5,200 (extension levels), but the RSI warning of being overbought at 86.13 should be considered.