📊 ETH to $4,000? Whale Buying Supports, Analysts Warn of Correction
Ethereum (ETH) has rallied strongly in recent weeks, climbing toward the $4,000 mark, but faces a critical moment as technical signals suggest a potential correction.
🐋 Bullish Factors:
Whale Accumulation:
CryptoQuant data shows whales are buying ETH at record levels.
SharpLink Gaming (SBET) purchased 79,949 ETH last week, increasing its holdings to 360,807 ETH.
SBET holds $96M in capital ready for further ETH purchases.
Institutional and Retail Confidence:
Ethereum’s uptrend driven by new ETF inflows and treasury strategies.
Strong sentiment persists among investors, supporting resilience against macro uncertainty.
⚠️ Bearish Concerns:
Overbought Conditions:
ETH has outperformed BTC for 14 consecutive days, prompting warnings from analysts.
RSI is overheated, signaling potential short-term exhaustion.
Resistance Rejection:
ETH faced rejection around the $3,730–$3,740 zone.
Current price retraced to $3,647, down 6% over 24 hours.
Attempts to reclaim resistance failed as high-volume liquidations intensified.
Analyst Warnings:
Michaël van de Poppe and “Andrew Crypto” warn of a needed correction to reset the trend.
Price action seen as fragile despite bullish on-chain metrics.
📉 Technical Breakdown:
ETH lost key supports at $3,690, $3,670, and $3,650.
Trading volume surged well above average, reinforcing bearish momentum.
Closing near session lows signals potential continued downside near term.
🎯 Outlook Summary:
🟢 Bulls Say
Whale buying and ETFs will drive ETH to $4,000 soon.
Institutional demand is at record highs.
🔴 Bears Say
RSI overheated; a correction is necessary before further upside.
Rejection at resistance shows technical fragility.
Conclusion:
Ethereum’s long-term trend remains bullish, but short-term risks of correction are high. A healthy pullback may be required before ETH can challenge the $4,000 level.
