Ethereum's current trend bears similarities to the cycle of 2016-2017, especially the acceleration in price after breaking key resistance levels. At that time, ETH soared from $10 to $1400, an increase of more than 140 times, largely due to the ICO boom and explosive adoption of smart contracts. Now, $ETH is once again approaching the $4000 mark, and market sentiment and capital inflows suggest that breaking this key level could trigger a larger upward trend.
Why is $4000 so important?
1. Psychological resistance level: $4000 is one of the peaks of the 2021 bull market; breaking through this level may attract more investors to chase the price, creating a FOMO effect.
2. Technical breakthrough: ETH has currently stabilized above $3600, with the RSI showing a 'bowl-shaped structure,' indicating strong buying pressure. If it breaks through the $3800-$4000 range, it may enter an accelerated upward phase.
3. Institutional capital support: Recently, ETH ETF inflows reached a record (over $700 million in a single day), and whale addresses continue to accumulate, indicating that large funds are optimistic about the future market.
Aggressive investors can continue to hold positions for higher returns, while conservative investors can take profits in batches to balance risk and reward. The key support level is between $3200 and $3400; as long as it does not drop below this range, the overall trend remains bullish.
