Ethereum ($ETH) has officially surged past the $4,000 mark, setting new yearly highs and confirming strong bullish momentum heading into the second half of 2025.
1. Trend & Momentum
Ethereum’s recent breakout above $4,000 signals a continuation of its upward trend, especially on higher timeframes. Long-term momentum remains strong, but short-term traders should stay alert for possible retracements or cooling-off periods.
2. Key Levels: Support & Resistance
New Support Zone:
The $3,950–$4,000 range — previously a resistance zone — is now acting as a key support area following the breakout. If price dips, this range could attract renewed buying interest.
Next Resistance Levels:
The next significant hurdle is around $4,100, which aligns with major Fibonacci retracement levels. A clean break above this could open the path toward higher price targets.
Additional Support:
Stronger support is also found along Ethereum’s rising trendline — a structure that has been guiding the current bullish cycle.
3. Technical Setup
Ethereum’s price structure looks like a “coiled spring” — forming higher highs with room to push further as long as support zones hold. Most technical indicators on the daily chart remain positive, with moving averages showing clear bullish signals and momentum staying intact.
4. Market Drivers
ETH’s rally isn’t just technical — there’s solid fundamental support behind the move. Key macro and market factors include:
Increased regulatory clarity (thanks to developments like Project Crypto and new stablecoin regulations)
Rising dominance of DeFi protocols
Large inflows into ETH-related ETFs
Record-breaking daily transaction volumes
Significant accumulation from institutional investors and crypto whales
Despite August typically being a slower month for crypto, 2025 has defied seasonal expectations with strong price action and market activity.
Ethereum Price Outlook
Short-Term Target: Around $4,400 (though it may take time to reach).
Year-End Projections: On average, analysts expect ETH to end the year near $4,688.
Bullish Scenarios: If the current momentum continues, we could see price targets in the $5,000 to $8,000 range by late 2025.