Ethereum News Today: Ethereum Tests $4,000 Threshold Amid Bullish and Bearish Outlooks

The ongoing price action of Ethereum has centered on the $4,000 psychological level, a key threshold that has proven difficult to break for over three years. Multiple failed attempts to surpass this level have reinforced its significance as a critical resistance point. Analysts and traders are now closely watching whether Ethereum can finally break through or continue to face rejection, a development that could signal either a new bull market or a deepening correction [1].

Crypto analyst The Alchemist Trader notes that Ethereum has entered a decisive phase as it tests the upper boundary of a long-standing price range between $1,300 and $4,000. This range has persisted for over a year, with the recent failed breakout at $4,000 sending the price back into consolidation. The analyst emphasizes that the behavior of the asset around this level will dictate its next major move—either a continuation of bullish momentum or a return to bearish conditions [3].

Trading activity below $4,000 remains highly speculative. Investors are caught in a precarious position, choosing between long and short positions based on whether Ethereum can establish a sustained breakout. Historically, previous retests of $4,000 have resulted in rejections, pushing the price back toward the mid-range or lower levels. While this pattern could repeat, the current market environment still holds bullish sentiment, with some analysts suggesting that Ethereum could leverage this momentum to achieve another breakout [1].

A successful breakout above $4,000 would open the path to key resistance levels such as $4,500 and the $5,000 psychological level. If these levels are tested and overcome, Ethereum could potentially reach new all-time highs [3]. Conversely, a further rejection of $4,000 could trigger a significant sell-off, reminiscent of the multi-month decline that followed a previous failed attempt in December 2024, which saw the price drop by more than 60% before finding a bottom at around $1,500 [1].

As of late July 2025, Ethereum traded near $3,700, having previously touched a year-to-date high of $3,941. The asset has shown signs of stabilization around $3,730, a level that may provide the necessary support to push the price closer to $4,000. However, a breakdown below this level could see the price retreat toward $3,500, adding to the uncertainty surrounding the near-term outlook [3].

Recent price movement has been supported by a breakout from a consolidation phase around $3,000 in July, followed by a rebound above $3,800. While some traders see this as a potential start to a more sustained upward trend, others remain cautious, emphasizing the need for a clear and decisive move before taking a strong position [5].

The broader market environment also plays a role in Ethereum’s direction. Macroeconomic data from the U.S., including the July ADP employment report and Q2 GDP figures, could influence investor sentiment and risk appetite. Additionally, the upcoming release of the White House’s first formal crypto policy report is expected to shape the regulatory landscape for digital assets, potentially affecting Ethereum and Bitcoin alike [1].

Despite recent gains, Ethereum’s price remains subject to divergent views among analysts. Some see potential for upward movement driven by macroeconomic stability and regulatory clarity, while others warn that volatility will likely persist given the fragmented market narrative and conflicting technical indicators [2]. The broader crypto market remains bearish, with fear-driven buying pushing Bitcoin toward potential highs, but also highlighting the speculative nature of current forecasts [2].

Investors are advised to remain cautious and reactive, closely monitoring both technical price developments and evolving macroeconomic and regulatory conditions. A definitive move—either above $4,000 or a deep pullback—will be crucial in shaping Ethereum’s next chapter. Until then, the market remains in a state of anticipation, waiting for a clear direction to emerge [1].

Source:

[1] https://www.kucoin.com/news

[2] https://www.instagram.com/p/DMsRx1KM24D/

[3] https://www.fxstreet.com/cryptocurrencies/news/ethereum-price-forecast-eth-set-a-new-year-to-date-high-next-target-above-4-000-202507291300

[4] https://www.fxstreet.com/cryptocurrencies/news/pump-xdc-form-post-double-digit-gains-as-ethereums-rally-targets-4-000-202507300456

[5] https://www.ainvest.com/news/xrp-news-today-ethereum-eyes-4-000-xrp-dogecoin-face-bearish-pressures-2507/

[8] https://www.binance.com/en/square/post/27627956890049

[9] https://www.tronweekly.com/ethereum-price-dip-will-it-rebound-break-4000/