Will Ethereum #ETH reach $4,000 after hitting a 7-month high of $3,819?

Ethereum reached $3,819, marking the highest price since December 2024. The RSI is at 87.50, and the CMF is at 0.27, reflecting strong bullish momentum.

Ethereum's market capitalization has risen to $456.11 billion, with daily trading volume surging by 21.08% to $38 billion, indicating an increase in liquidity inflow. The trading volume to market cap ratio for Ethereum currently stands at 8.14%, highlighting its sustained trading activity relative to its size.

Institutional investor interest is also on the rise. A 'whale' recently purchased 47,121 ETH through FalconX, worth $169 million. This large-scale accumulation, coupled with reduced selling pressure, signifies that investors' strategic positioning has become clear ahead of regulatory clarifications.

Moreover, investor optimism regarding the U.S. Securities and Exchange Commission (SEC) approving the Ethereum ETF staking amendment continues to grow. Analysts expect this amendment could be authorized in the fourth quarter of 2025, similar to the precedent set by the approval of the Bitcoin ETF in early 2024.

From a technical perspective, although Ethereum shows signs of overheating, it maintains strong upward momentum. It decisively broke through the resistance levels of $3,600-$3,900. If this bullish trend continues, price predictions will extend to the $4,637-$5,233 range, as indicated by the Fibonacci extension lines.

Immediate support is at $3,500; if this level is not maintained, it could revert to the pivot point of $3,200. Ethereum's current price is also well above the 7-day simple moving average ($3,302), confirming a bullish crossover and thereby enhancing trend strength.

Chart indicators validate the technical foundation of this rebound. The Relative Strength Index (RSI) is currently at 87.50, indicating that the market is in overbought territory. However, the upward divergence of the RSI from the 73.81 moving average supports continued buying pressure.

Additionally, the Chaikin Money Flow (CMF) indicator shows +0.27, indicating that funds continue to flow into Ethereum. The expansion of trading volume also reflects bullish sentiment. The rising green candlesticks accompanied by increased trading volume suggest that the market is accumulating healthily rather than experiencing speculative spikes.