Why is $4,000 a key resistance level for Ethereum?
$4,000 price point is an important resistance for Ethereum, limiting price increases multiple times since 2021. Breaking and maintaining above this level is crucial for confirming the continuation of the bullish trend and opening higher price targets. Market analysts emphasize that $4,000 has been the price ceiling seven times, making it a key psychological and technical resistance level.
How will Ethereum's price trend after breaking $4,000?
Once Ethereum breaks through $4,000 and confirms it as a support level, analysts predict its short-term target prices will be $4,800 and $5,400. Experts' long-term forecasts indicate that Ethereum could rise to $8,000 or even $9,000 during this market cycle. Strong trading volume and interest from institutional investors support this expectation, suggesting robust market demand.
What role do DeFi and institutional interests play in Ethereum's price action?
Ethereum dominates the decentralized finance (DeFi) sector, accounting for 60% of the total value locked of $140 billion across all protocols. The activity of Layer 2 scaling solutions such as Arbitrum and zkSync is continuously increasing, leading to growth in trading volume, further solidifying Ethereum's leading position. Institutional capital inflow, especially after ETH ETFs received regulatory approval, further enhances Ethereum's bullish momentum.
How do technical indicators support Ethereum's upward trend?
Technical analysis shows that Ethereum's trading price is above its 100-day and 200-day exponential moving averages, indicating a sustained bullish trend. The relative strength index (RSI) has improved, suggesting increasing buying pressure. Trading volume surged to $32.95 billion, enhancing the current upward momentum. These factors combined indicate a high likelihood of Ethereum breaking the $4,000 resistance level.
#ETH Finally exploded.
This is one of the most anticipated trends of this cycle.
pic.twitter.com/szmDOmPjQo
— Crypto Titan (@Washigorira) July 29, 2025
Frequently Asked Questions
What does the $4,000 resistance level mean for Ethereum?
$4,000 resistance is a major technical barrier that Ethereum has struggled to break since 2021. Breaking this level will confirm the bullish trend and may trigger a rebound toward higher price targets.
How does institutional inflow affect the price of Ethereum?
Institutional capital inflow, especially through ETH ETFs, has increased demand and liquidity, thereby supporting the momentum of price increases and market confidence.
How to track Ethereum's key price levels?
Monitor the daily closing price around $4,000 to confirm the breakthrough or rejection.
Observe trading volume and RSI indicators for signs of sustained momentum.
Pay attention to Layer 2 network activity and DeFi TVL reports to understand the health of the ecosystem.
Stay updated on institutional ETF inflows and regulatory developments.
Key Points
Ethereum is approaching the critical $4,000 resistance level, which is key to confirming the continuation of bullish momentum.
The dominance of DeFi and growth of Layer 2 solidify Ethereum's strong market position.
Institutional capital inflow and technical indicators support the potential for significant upward movement.
Conclusion
The price of Ethereum approaches the $4,000 resistance level, marking a critical moment in the current market cycle. Supported by strong DeFi fundamentals and growing institutional interest, breaking this resistance level may release significant upward potential. As Ethereum strives to reach new highs, investors and traders should closely monitor key technical levels and ecosystem developments.
Continue to pay attention SOPH SPK MDT ENA
