Ethereum (ETH) Consolidates: Can It Still Smash the $4,000 Barrier?

Ethereum's price action has traders on edge—stuck in consolidation but teasing a potential breakout. The $4,000 target looms large, but can ETH defy gravity and rally?

Key levels to watch: Bulls need a decisive close above $3,500 to confirm momentum. Bears lurk below $3,000, ready to pounce on weakness.

Market whispers suggest institutional accumulation—smart money betting big on ETH's next leg up. Meanwhile, retail traders oscillate between FOMO and panic (as usual).

Technical outlook: RSI coils in neutral territory, MACD flirts with a bullish crossover. Volume remains the missing piece—no fireworks without fuel.

Bottom line: Ethereum's fundamentals haven't changed—it's still the backbone of DeFi. But in crypto, logic takes a backseat to liquidity. Will this time be different? (Spoiler: Wall Street still doesn't get it.)

Ethereum (ETH) price showed signs of consolidation in July 2025 as on-chain data flashed bullish signals.

Meanwhile, ethereum has seen some dramatic upward moves in recent days that is threatening its sustained breakout.

This has led some analysts to question whether a push toward the $4,000 level is still on the table, given the current market setup.

Ethereum (ETH) Holding Steady as Traders Watch for a Breakout

It is worth mentioning that Ethereum has stayed in a holding pattern so far this July.

The coin has seen several positive price moves and, as of writing, was trading at $2,962.28. It has also held above key support levels of $2,800.

In his latest post on X, trader TedPillows shared a chart suggesting that Ethereum (ETH) might be preparing for another leg up.

He mentioned that either a hold or a higher low could push ETH toward $4,000.

Notably, several on-chain metrics are now supporting that view. One of them is the MVRV Z-Score.

This indicator measures how far the market value is from the realized value, which helps show whether an asset is under- or overvalued.

In past cycles, whenever this score began to climb from low levels, Ethereum (ETH)’s price usually followed with substantial gains.

So far in this cycle, it has not peaked, which some believe means the rally is not yet over.

Another metric catching attention is the SOPR, which tracks whether investors are selling at a profit or loss.

It moved above one for the first time this year. Analysts noted that when this shift happens after months, it often marks a turning point.

The NUPL, which shows the gap between unrealized profits and losses, also turned positive in May and just moved above 0.3.

It is essential to add that this pattern has been linked to strong rallies in the past.

$4,000 Still Possible if Trends Continue

Amid the current trend, the big question now is whether Ethereum (ETH) has the bullish strength to reach $4,000.

The current signals suggest that it could happen if the momentum holds.

So far, this cycle has not seen the kind of extreme highs that past cycles recorded. That alone leaves some room for further growth.

Still, the market has remained cautious about over committing. At the same time, on-chain indicators are pointing up.

External factors such as trading volume, regulatory news, and overall market mood also play a role.

That said, when the MVRV, SOPR, and NUPL all MOVE into positive territory together, it has often led to big moves.

The SOPR’s recent flip above one and the way it held that level is being watched especially.

If that support holds, it may add to buying confidence. Traders are also waiting to see if a higher low forms soon, which WOULD confirm strength.

ETH Traders Focus on Support Levels and Sentiment

It is worth noting that as the second half of July begins, Ethereum (ETH) is still trading within a familiar range.

However, that could change quickly if more buying comes in. For now, analysts are focused on whether the coin keeps holding support NEAR recent lows.

Any shift in trend would likely show up first in the on-chain data. MVRV staying above zero, SOPR above one, and NUPL above 0.3 are the key things many are tracking.

These trends do not guarantee a rally, but they suggest Ethereum (ETH) still has room to climb.

Whether the $4,000 target is reached will depend on how these signals hold up and if enough buying pressure follows.

Meanwhile, on a broader outlook, former Bitmex CEO Arthur Hayes predicted that Ethereum (ETH) could rally to a new all-time high of $10,000 this year.

So far, the data continues to support that view. As of writing, CoinMarketCap pegged Ethereum’s market capitalization at $357.97 billion.