Ethereum Price Surge: ETH Targets $4K Breakout Amid Key Resistance Battle

Ethereum bulls are charging—again. ETH flirts with the psychological $4K barrier, but not without a fight from stubborn resistance levels. Here’s what’s at stake.

The $4K Gambit: A clean breakout could turbocharge bullish momentum, but traders eye overhead supply zones like hawks. No free lunches in crypto—even for the second-largest asset.

Market Mechanics at Play: Liquidity pools cluster around $4K, tempting both breakout traders and profit-takers. Classic tug-of-war—just add blockchain.

Cynical Finance Jab: Wall Street still thinks 'HODL' is a typo. Meanwhile, ETH’s 2025 rally leaves traditional assets eating dust.

Technical Analysis

By ShayanMarkets

The Daily Chart

On the daily chart, ETH is consolidating below its previous high at $4,100 after a clean breakout above the $2,800 and $3,300 resistance levels. The $3,300 region had previously acted as a supply zone but has now flipped to support.

The 100-day and 200-day moving averages also just completed a golden cross around $2,600, which reinforces the macro bullish bias. Yet, the RSI is in overbought territory, hovering above 77, which suggests the asset might need a short-term cooldown before another leg up.

If the price pulls back from here, the first area of interest remains the $3,300 zone for a potential retest. As long as ETH stays above that level, buyers remain in control. However, losing that region WOULD open up a deeper correction into the $2,800 area, where the moving averages are located nearby. Overall, the daily structure is still bullish, but signs of exhaustion are emerging.

The 4-Hour Chart

On the 4H chart, ethereum is trading inside an ascending channel, with the price repeatedly testing the upper boundary and failing to continue higher. This pattern often leads to breakdowns, especially when paired with a slowing RSI, which is now below 60. Still, there’s no clean invalidation of the uptrend yet. The asset is rising again toward the higher trendline of the pattern, after finding support at the $3,700 support zone.

For the bulls, a confirmed breakout above the $4,000 level and the higher boundary of the channel could potentially open the door toward new highs. But if the channel breaks down, the $3,500 level will act as the first key support. As long as that level holds, the trend is just cooling off. A MOVE below $3,500, however, would shift momentum to the downside and could trigger further selling pressure.

Sentiment Analysis

Ethereum Short Liquidations

Sentiment still leans bullish, but a few signs suggest a pause may be coming. Ethereum short liquidations have surged massively in the last few weeks. This shows aggressive shorts being wiped out, which often marks short-term tops as liquidity thins out above. There are fewer shorts left to liquidate at this point, so any further upside will need real spot demand.

Overall, while the buyers are still in control, the easy short squeeze is likely behind us, and Ethereum may need a reset before continuing higher.