Ethereum ($ETH) has decisively broken through the $4,000 barrier, marking fresh yearly highs and reinforcing strong bullish momentum as the second half of 2025 begins.
1. Trend and Momentum
The breakout above $4,000 reflects Ethereum’s sustained upward trajectory, particularly on higher timeframes. While the long-term outlook remains bullish, short-term pullbacks or periods of consolidation should not be ruled out.
2. Support and Resistance Levels
Primary Support: The $3,950–$4,000 range, once a major resistance, is now acting as a critical support zone and could attract renewed buying if tested.
Key Resistance: The $4,100 level stands as the next major obstacle, aligning with significant Fibonacci retracement points. A decisive move beyond this could open the way for higher price targets.
Additional Support: Ethereum’s ascending trendline continues to underpin the current rally, providing an extra layer of strength.
3. Technical Outlook
Price action suggests a “coiled spring” setup — higher highs supported by solid fundamentals and technical indicators. Moving averages point upward, and momentum readings remain strong, keeping the bullish bias intact.
4. Market Catalysts
Ethereum’s rally is underpinned by both technical and fundamental drivers, including:
Greater regulatory clarity from recent policy developments and stablecoin frameworks
Expanding dominance of DeFi platforms
Growing inflows into ETH-focused ETFs
Record daily transaction volumes
Strategic accumulation by institutions and large-scale investors
August 2025 is defying the typical seasonal slowdown, with ETH showing remarkable resilience and activity.
Price Outlook
Short-Term Target: $4,400 (with potential gradual progress)
Year-End Consensus: Around $4,688 based on average analyst projections
Bullish Extension: Sustained momentum could propel ETH toward $5,000–$8,000 by year-end. #ETHBreaks4000
