Ethereum is approaching a key resistance level at $3,980.
A successful breakout may lead to a major price surge.
Market sentiment remains cautiously optimistic.
Ethereum ($ETH) is testing a key technical barrier at the $3,980 mark—a level that has previously acted as strong resistance in past cycles. Analysts believe that a breakout above this point could pave the way for a powerful bullish momentum, potentially lifting Ethereum toward new yearly highs.
This resistance level is more than just a psychological barrier—it’s backed by historical price action and trading volume. ETH’s previous attempts to break this level were met with selling pressure. However, this time, the broader market environment appears more favorable. With Bitcoin holding strong and institutional interest returning, ETH may be primed for a breakout.
What’s Fueling the Momentum?
Several factors are supporting Ethereum’s current price movement. The anticipation of Ethereum ETF approvals in key markets, the rise of decentralized finance (DeFi) activity, and renewed interest in staking are all contributing to positive sentiment.
Moreover, Ethereum’s recent upgrades and network improvements have enhanced scalability and reduced gas fees, making it more attractive for both developers and users. These fundamentals could provide the tailwind ETH needs to breach the $3,980 resistance.
A key resistance level ahead for Ethereum $ETH is $3,980. Breaking above it could ignite a major bull rally! pic.twitter.com/11v2ytwIIs
— Ali (@ali_charts) July 16, 2025
What Happens If ETH Breaks $3,980?
If Ethereum manages to close above $3,980 with strong volume, it could open the door to a rally toward the $4,200–$4,500 range. This would likely attract short-term traders and long-term investors alike, increasing buying pressure.
However, if ETH fails to break this resistance, a pullback to support levels near $3,700 is possible. Traders are advised to watch the charts closely and manage risk appropriately.
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