Ethereum Nears $4,000 Resistance as Market Recovery Fuels Bullish Momentum

Ethereum (ETH) is showing renewed strength after a volatile period, edging closer to the crucial $4,000 resistance level. The cryptocurrency has gained traction alongside the broader market rebound, stabilizing above $3,900. For investors, this zone represents more than just a psychological barrier—it’s a decisive point where short-term sellers meet long-term believers in Ethereum’s resilient blockchain ecosystem.

From a technical perspective, Ethereum is attempting to recover above its 50-day moving average, which has acted as a dynamic resistance line in recent weeks. The price continues to trade above both the 200-day and 300-day moving averages, signaling sustained mid- to long-term bullish potential. The recent flattening of these moving averages suggests that ETH could be transitioning from a corrective phase into a consolidation and base-building stage, a possible precursor to further upside movement.

Momentum indicators are also showing cautious optimism. With the Relative Strength Index (RSI) sitting at 45, ETH remains neither overbought nor oversold, suggesting room for growth. A decisive breakout above the $4,070–$4,100 range could confirm a short-term bullish reversal, opening the path toward $4,250–$4,400. Such a move could attract renewed institutional interest and speculative buying, potentially amplifying upward momentum.

However, traders should remain cautious. The 200-day average near $3,750 marks a critical support zone. A drop below this level could invalidate the current recovery setup and expose Ethereum to a deeper correction toward $3,500. For now, Ethereum stands at a pivotal juncture—close enough to break through resistance but still within reach of risk. Sustained buying pressure and stable macro sentiment could soon propel ETH beyond $4,000, setting the stage for a potential retest of its yearly highs.