Ethereum News Today: Ethereum Tests $4,000 Resistance for 8th Time Amid ETF Inflows and Short Liquidation Risk

Ethereum’s price is at a pivotal moment as it repeatedly tests the $4,000 resistance level, a critical threshold that has historically acted as a ceiling since early 2022. The cryptocurrency has approached this level eight times since mid-July, with prior attempts failing to push through, leading to retracements or consolidation [3]. A confirmed weekly close above $4,000 would signal a structural breakout, potentially propelling the asset toward $4,500–$5,000, driven by alignment of Fibonacci extensions and historical price patterns [3]. Conversely, a rejection could force ETH back toward $2,500, a confluence of Point of Control and 0.618 Fibonacci support, maintaining its long-term range-bound structure [3].

Technical analysis highlights mixed signals. While elevated volume suggests active buyer participation, the lack of a decisive weekly close above $4,000 leaves uncertainty. Traders are monitoring whether the current consolidation within a descending wedge pattern will resolve with a breakout [5]. However, historical data shows that past attempts to surpass $4,000 have often triggered sharp pullbacks, raising skepticism about the sustainability of near-term gains [3]. A rejection could also transform the $4,000 level into a support zone, creating a strategic entry point for long-term investors [8].

Market dynamics are further complicated by short positions at risk of liquidation. If Ethereum surges past $4,062, approximately $1.31 billion in short positions may be forcibly closed, generating upward pressure [2]. Meanwhile, Ethereum’s spot ETFs have seen a 17-day consecutive inflow streak, totaling $453 million in the latest session, reflecting growing institutional interest [6]. Analysts cite bullish patterns like a "diamond formation" as indicators of a potential $4,000–$6,000 breakout, though this remains speculative [6].

The broader market sentiment remains cautiously optimistic, with Ethereum reflecting a tug-of-war between ETF-driven demand and bearish short-term traders. Some traders have positioned for a "surge mode" following a recent rebound above $3,800 [1], while others warn of volatility risks due to thin liquidity at key levels. The July 27–August 3 timeframe is critical for determining the next major price direction [7]. A sustained breakout would likely shift sentiment across the altcoin market, whereas a pullback could delay bullish expansion and reintroduce uncertainty [3].

Source: [1] [Ethereum at a turning point: breakout or rejection at $4000?](https://crypto.news/ethereum-at-a-turning-point-breakout-or-rejection-at-4000/) [2] [ETH sprinting towards $4000! Next stop: heaven or hell?](https://www.binance.com/en/square/post/27542963960770) [3] [Ethereum Tests $4000 Resistance for 8th Time as Price ...](https://www.ainvest.com/news/ethereum-news-today-ethereum-tests-4-000-resistance-8th-time-price-holds-3-780-4-6b-etf-inflows-rising-leverage-2507/) [4] [Ethereum Exit Queue Surges, Investors Watch Closely](https://m.economictimes.com/crypto-news-today-live-26-jul-2025/liveblog/122911908.cms) [5] [Page 4 | Ethereum Token / Tether USD on BSC ...](https://www.tradingview.com/symbols/ETHUSDT_DE67D0.USD/ideas/page-4/?asset=base&video=yes) [6] [Ethereum Price Prediction: ETFs Log 17-Day Inflow Streak](https://cryptonews.com/news/ethereum-price-prediction-etfs-log-17-day-inflow-streak-is-a-supply-shock-coming/) [7] [Page 8 | Ethereum Trade Ideas — BITSTAMP:ETHUSD](https://www.tradingview.com/symbols/ETHUSD/ideas/page-8/) [8] [Ethereum at a turning point: breakout or rejection at $4,000?](https://coinmarketcap.com/community/articles/688781283c1f324d51532f5b/)