Ethereum Price Nears $4,000 as Bullish Momentum Intensifies

Ethereum (ETH) is showing strong bullish momentum, trading just below the key $4,000 level after a sharp breakout above $3,000 earlier in July. The move marks a decisive shift from consolidation, with ETH now targeting the $3,815 resistance zone — a historically significant level that has acted as both support and resistance in past cycles.

The daily chart reflects a clear uptrend, with higher highs and higher lows reinforcing bullish structure. Ethereum’s moving averages have aligned positively, with the 21-day EMA serving as dynamic support during the rally. While trading volume has slightly tapered, it remains stable enough to sustain the current momentum.

However, $4,000 represents a dense resistance area that previously served as a distribution top. Analysts caution that a direct breakout without a retest or brief pullback is statistically rare. A wick above $4,000 could occur, but holding above this level will require strong buying pressure from momentum traders.

The Relative Strength Index (RSI) is currently above 80, signaling overbought conditions. This suggests the likelihood of a cooling phase, potentially through sideways consolidation or a short retracement toward $3,400–$3,200. Such a pullback, however, would not necessarily invalidate the bullish trend and could provide renewed strength for a cleaner breakout later.

If Ethereum maintains support above $3,750 and resists heavy profit-taking, a decisive push through $4,000 may unfold, potentially igniting the next phase of its rally. Traders are closely watching this psychological level as ETH continues to mirror the parabolic price action seen in previous bullish cycles.