Ethereum News Today: Ethereum Surpasses $3,870 as Bullish Momentum Builds Toward $4,000 Breakout

Ethereum is displaying a compelling technical pattern that suggests a potential major price rally is on the horizon. Recent developments include a triple RSI signal and a falling wedge breakout—similar to the setup that preceded Bitcoin’s fivefold surge in 2020. Technical analysts and market observers are closely watching whether Ethereum can replicate that trajectory [1].

The Relative Strength Index (RSI) has shown a strong momentum shift, currently at 56.55, signaling balanced bullish momentum. While some analysts note the RSI remains in overbought territory, this is not necessarily a bearish sign and may indicate strong buying pressure that could drive further gains [2]. The convergence of a triple RSI divergence and a falling wedge breakout on the daily chart adds to the optimism that Ethereum is building up for a breakout.

Analysts have identified key resistance levels, with $4,000 being a critical threshold. A decisive move above this level is seen as a confirmation of a new upward trend. According to trader Ali Martinez, a close above $4,100 would be a strong signal for bullish continuation [3]. The 20-day Simple Moving Average currently stands at $3,473, and as long as Ethereum stays above this level, the bullish bias remains intact [4].

Ethereum has already surpassed previous resistance at $3,200 and is now approaching the psychological level of $4,000. Maintaining strength above $3,870 is considered a key confirmation of its bullish momentum [6]. This recent performance suggests a shift in market sentiment, with growing accumulation activity among large holders and increasing confidence in the asset’s potential.

While Ethereum’s breakout could have a cascading effect across the broader crypto market, altcoins like PUMP, XDC, and FORM have already shown significant gains in recent sessions [5]. However, the market remains volatile, and short-term RSI momentum has shown some bearish tendencies, indicating that caution is still needed [7]. Profit-taking has also been observed, which could temporarily cap further gains.

Despite these considerations, many analysts remain optimistic. The combination of strong RSI readings, key price level tests, and accumulation signals points to a potential turning point for Ethereum. If the current bullish trend continues and resistance levels are decisively broken, the next major target could be as high as $9,000, according to some forecasts [9]. Investors are closely watching for confirmation of a breakout to determine whether Ethereum is entering a new upward cycle.

Sources:

[1] title: Ethereum Price Targets $4k - Is a $1.4B Liquidation Coming? (https://coinpedia.org/price-analysis/ethereum-price-targets-4k-is-a-1-4b-liquidation-coming/)

[2] title: Altcoin rally led by ETH, BNB, AVAX, PENGU likely if ... (https://www.tradingview.com/news/cointelegraph:29273c550094b:0-altcoin-rally-led-by-eth-bnb-avax-pengu-likely-if-bitcoin-range-break-occurs/)

[3] title: Here's when Ethereum's 'real breakout begins' as whales ... (https://finbold.com/heres-when-ethereums-real-breakout-begins-as-whales-go-big-on-eth/)

[4] title: $eth shows strong recovery signs — bullish move likely ... (https://www.binance.com/en/square/post/27632364256426)

[5] title: PUMP, XDC, FORM post double-digit gains as Ethereum's ... (https://www.mitrade.com/insights/news/live-news/article-3-996125-20250730)

[6] title: Ethereum Price Could Rise To $9000 This Cycle, Eyes ... (https://www.tradingview.com/news/newsbtc:2599cc85b094b:0-ethereum-price-could-rise-to-9-000-this-cycle-eyes-breakout-against-bitcoin/)

[7] title: Profit Taking Continues To Weigh On Cryptocurrencies (https://seekingalpha.com/article/4805723-profit-taking-continues-to-weigh-cryptocurrencies?source=generic_rss)