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Ethereum’s Bullish Surge: Targeting $4K Amid Key Support and Liquidation Risks

Ethereum’s Bullish Surge: Targeting $4K Amid Key Support and Liquidation Risks

Published:
2025-07-22 05:51:55
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Ethereum (ETH) is making headlines once again as its recent breakout has sparked renewed bullish sentiment among analysts and investors. With a decisive break above descending resistance, the cryptocurrency is now eyeing the $4,000 mark as its next key resistance level. Prominent crypto analyst Captain Faibik has projected a near-term push to this threshold, citing strong institutional accumulation as a driving force behind the upward momentum. The $3,500 level has emerged as critical support, and maintaining this level could further solidify ETH's bullish trajectory. However, traders should remain cautious of potential liquidation risks that could emerge amid this volatile price action. As of July 2025, Ethereum's market dynamics continue to captivate the crypto community, blending optimism with calculated risk awareness.

Ethereum Eyes $4K Amid Bullish Breakout but Faces Liquidation Risks

Ethereum's recent breakout has reignited bullish sentiment, with analysts targeting the $4,000 mark as the next key resistance level. Captain Faibik, a prominent crypto analyst, projects a near-term push to this threshold following ETH's decisive break above descending resistance. The $3,500 level now serves as critical support—holding above it could solidify upward momentum.

Institutional accumulation remains a driving force. SharpLink Gaming has aggressively added 157,140 ETH since July 1 at an average price of $3,136, signaling strong conviction in Ethereum's long-term value proposition. However, declining network activity and $46.65 million in liquidation risks loom as potential headwinds. Market participants await confirmation of sustained buying pressure to validate the breakout.

Ethereum Gains Institutional Momentum as Price Outlook Turns Bullish

Ethereum is capturing institutional interest as analysts project significant price appreciation. Whale addresses have accumulated more than 500,000 ETH over two weeks—a pattern historically preceding major market moves.

Fundstrat's Tom Lee cites a $15,000 valuation target based on EBITDA comparisons with traditional finance firms. Technical analysis suggests a near-term rally to $4,000 by July's end, with longer-term models aligning with Lee's outlook.

The blockchain's dominance in real-world asset tokenization strengthens its case. Over 60% of tokenized RWAs reside on Ethereum, with JPMorgan and Robinhood among enterprises leveraging its infrastructure.

Ethereum Open Interest Hits Record $50 Billion – Volatility Incoming?

Ethereum holds firm above $3,500, reclaiming a key support level and signaling renewed market strength. The asset has surged over 70% since late June, entering a bullish phase fueled by rising demand and institutional interest. Technical indicators and price action now align to support further upside.

Derivatives markets flash a critical signal: Ethereum's open interest has reached an all-time high of $50 billion. This surge in trader activity typically precedes significant price movements, suggesting impending volatility. The combination of sustained price levels, strong trend continuation, and growing capital inflows sets the stage for a potential breakout.

Market structure now favors bulls. Maintaining the $3,500 support level could propel ETH toward new 2025 highs in the short term. The coming week may prove decisive for Ethereum's medium-term trajectory as traders await confirmation of this momentum.

Institutional Accumulation Fuels Ethereum's Bullish Momentum

Ethereum's price action has paused after a recent surge, but institutional investors continue to accumulate ETH at scale. Over $270 million worth of Ether moved into self-custody addresses this week, signaling strong conviction in the asset's upside potential.

Technical indicators remain favorable despite slight RSI cooling. The steady golden cross formation—with the 50-day EMA holding $400 above the 200-day—suggests sustained bullish momentum. Analysts identify $3,500-$3,750 as the next resistance zone, with robust support at $3,000.

Market attention extends beyond ETH to ecosystem tokens like AAVE and Remittix, both benefiting from protocol upgrades and surging DeFi activity. 'The smart money isn't just betting on Ethereum's infrastructure,' noted one trader, 'but on the entire stack of decentralized finance.'

Ethereum Price Prediction: ETH Just Hit 180-Day Peak – Can This Last?

Ethereum surged to a 180-day high of $3,671, marking a 152% rally from March lows NEAR $1,392. The momentum accelerated in July with a record 37% monthly gain, fueled by historic institutional demand. Spot ETFs saw single-day inflows of $720 million, with BlackRock, Fidelity, and Grayscale leading the charge.

ETH now trades above all major moving averages, approaching the critical $4,000-$4,200 resistance zone. Institutional accumulation for ethereum has outpaced Bitcoin, underscoring a shifting preference among major investors. Technical analysis suggests the rally may just be beginning, with an ascending channel targeting a breakout at $4,100.

The 4-hour chart shows strong momentum, with RSI readings at 78.54 indicating overbought conditions. Pullbacks are likely to find support at higher levels, reinforcing the bullish trend.

Ethereum Set To Hit $10,000, Elliott Wave Analysis Predicts

Ethereum's bullish momentum continues to dominate the crypto market, with prices surging 45.48% over the past month to reach $3,600. Dutch analyst Gert Van Lagen predicts a potential rally to $10,000 based on Elliott Wave Theory, signaling the final phase of ETH's bull cycle.

The technical framework identifies a five-wave pattern unfolding since 2022, with Wave V currently in progress as an expanding diagonal. Market psychology suggests this could mark the culmination of Ethereum's upward trajectory, mirroring historical crypto market cycles.

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