Ethereum News Today: Ethereum Surges 5.59% Past $4,000 as Bulls Gain Control

Ethereum’s price recently broke above the $4,000 level after weeks of consolidation near $3,800, marking a notable milestone in its recent bullish trend. Over the past 24 hours, the price surged by 5.59%, signaling renewed interest from traders and investors. Technical indicators now suggest that the momentum behind this move is not just a short-term pump but potentially a more sustained upward trend [1].

Key momentum tools such as the Bull-Bear Power (BBP) index have turned green after three consecutive red candles, indicating that buyers are pushing the price higher than what sellers were willing to accept. This shift in buyer-seller dynamics suggests that bulls are in control, and the rally has not yet shown signs of overheating [1].

The Relative Strength Index (RSI) also supports a bullish setup, with the indicator showing a clean “higher high” in both price and RSI values. This alignment confirms the strength of the move and rules out bearish divergence, a sign of a potentially false breakout. Similar RSI patterns observed in mid-July were followed by a 12% price increase within days, suggesting the current conditions could lead to a similar or even stronger move [1].

Market depth data reinforces the bullish narrative. The long/short ratio on Binance remains biased toward short positions, with more traders betting against a price rise. However, the price continuing to climb despite this short bias may lead to a short squeeze, where short-sellers are forced to cover their positions at higher prices, further fueling the upward move [1].

The Taker Buy/Sell Ratio has crossed above 1, indicating that more traders are buying ETH at the market price rather than waiting for better offers. This suggests urgency and conviction in the current rally. A sustained reading above 1 typically marks the beginning of a larger trend [1].

The Coinbase premium gap—measuring the price difference between Coinbase and other exchanges—has turned positive again. This signals strong U.S. demand and the presence of institutional or large-cap traders buying Ethereum. These types of buyers tend to have a longer-term outlook compared to retail traders, adding credibility to the current price action [1].

On the chart, Ethereum has cleared the key Fibonacci resistance level at $3,964, which now acts as support. The next immediate resistance is at $4,100 and $4,131, levels where the price was previously rejected in March and December. A successful breakout above $4,131 could open the door to the $4,900 level, which is the Fibonacci extension target drawn from the previous cycle. Historical price patterns suggest that a similar move in 2021 led to a nearly 30% surge within weeks [1].

While there is no major resistance in the volume profile between $4,131 and $4,900, the success of this move will depend on ETH sustaining its momentum through retests of key levels. A failed retest or a sudden external shock could delay the projected target. However, so far, the technical setup appears strong and consistent with a continuation pattern [1].

Source: [1] Ethereum Price Crosses $4,000, Even Bigger Move on The Charts? (https://coinmarketcap.com/community/articles/68965d1855ec7778c0d49296/)