Ethereum (ETH) has surged to its highest level in over seven months, currently trading at $3,745 after gaining 27% in the past week. This bullish momentum is largely driven by heavy accumulation from investors, as exchange balances continue to drop significantly. The price now sits just below the key psychological barrier of $4,000, raising the question: can ETH sustain the rally or is a correction on the horizon?
Ethereum Investors Withdraw Over $1.18 Billion in ETH
Data from on-chain trackers indicates that since the beginning of July, more than 317,000 ETH (worth approximately $1.18 billion) have been withdrawn from exchanges. This sharp decline in exchange supply is a strong bullish indicator, suggesting investors are choosing to hold ETH long-term rather than selling it.
Such accumulation behavior typically tightens supply, pushing prices higher. The rising Network Value further supports the bullish sentiment to Transactions (NUPL) ratio, which now approaches the “Belief-Denial” zone — a region historically associated with short-term corrections following euphoric rallies.
Can Ethereum Break the $4,000 Resistance?
The $4,000 level is a well-known psychological and technical resistance zone. Ethereum’s current price action, up nearly 7% from this barrier, puts it within striking distance of a potential breakout. If ETH successfully breaches $4,000, market analysts believe it could trigger further buying pressure, possibly pushing prices to new yearly highs.
However, caution remains. The NUPL’s proximity to its critical zone suggests many investors are now in significant profit, and this may lead to profit-taking. If that happens, Ethereum may fail to clear $4,000 and pull back to $3,530. Losing this key support could further drop ETH to $3,131, erasing much of the recent rally.
Investor Confidence Holds the Key
The next few days will be crucial for Ethereum. Sustained accumulation and bullish market sentiment could fuel a breakout beyond $4,000, reinforcing ETH’s long-term uptrend. On the other hand, any shift toward broader market caution or sudden selling could trigger a temporary correction.
At the time of writing, Ethereum remains one of the strongest-performing altcoins in July, reflecting growing confidence in its long-term potential, particularly as decentralized finance (DeFi) and smart contract adoption continue to rise.
The post appeared first on CryptosNewss.com
