Family, the crypto world is buzzing with huge news again! Ethereum has surged strongly, breaking through the $4000 mark. This wave of market activity has ignited enthusiasm, causing countless investors' hearts to race! So, after Ethereum breaks $4000, will it rise or fall next? Today, let's analyze this thoroughly.
I. Strong Upward Momentum, Bull Market Trend Continues?
From recent market dynamics, Ethereum has strong upward momentum. On one hand, institutional funds are continuously pouring in. Financial giants like BlackRock are actively laying out positions in Ethereum, and they are not just dabbling; they must have conducted substantial research behind the scenes, which proves Ethereum's enormous potential. Moreover, the net inflow of Ethereum spot ETFs has repeatedly hit new highs, exceeding $3 billion in just the past two months. The real money invested by institutions is undoubtedly a strong endorsement of Ethereum's prospects.
On the other hand, the staking scale of Ethereum is constantly expanding. Currently, about 30% of ETH has been locked for staking. From early June to mid-July, more than 1.5 million ETH were newly staked. The more ETH that is staked, the less circulation there is in the market. With the typical principle of 'scarcity increases value', a decrease in supply under unchanged or even increasing demand will inevitably drive up prices.
From the analysis of technical indicators, Ethereum's MACD indicator has continuously risen after a golden cross, and the RSI indicator has firmly remained in the overbought area, showing strong upward momentum. Various signs indicate that Ethereum's upward trend is evident, and it is likely to continue rising in the short term towards higher targets.
II. Potential Risks Remain, Pullback Pressure Emerges
Of course, the market is always full of uncertainties, and Ethereum also faces some potential risks. Firstly, although the overall trend is upward from a technical perspective, short-term indicators show a demand for pullback. The current Relative Strength Index (RSI) and stochastic oscillator both indicate that ETH is in an 'overbought' state, which means that the price may experience some pullback or consolidation in the short term.
Secondly, the uncertainty of regulatory policies remains a sword of Damocles hanging over cryptocurrencies. Although some countries and regions are gradually clarifying their stance on cryptocurrencies, many unknown factors still exist. If there is a significant shift in regulatory policies, the impact on Ethereum's price could be substantial.
Furthermore, market sentiment fluctuations can also affect Ethereum's price. Cryptocurrency investors' emotions can easily be influenced by various news, and once panic or profit-taking occurs in the market, large-scale selling may lead to a decrease in Ethereum's price.
III. Future Trend Prediction
Considering various factors, the future trend of Ethereum is likely to show a fluctuating upward movement. In the short term, if it can successfully break through $4000 and stabilize, the next target may be $4200 - $4500. However, if it encounters resistance around $4000 and experiences a pullback, the pullback range may be between $3500 - $3800.
In the medium to long term, as long as Ethereum continues to maintain technological innovation, continuously optimize performance, attract more developers and users, along with sustained institutional inflows and stable growth in staking scale, while the regulatory environment does not experience major upheaval, Ethereum is very likely to challenge the historical high of $4800, and may even reach $8000 - $10000 by the end of 2025.
However, investing in Ethereum is not without risks, and everyone must make careful decisions. For friends who have not yet entered the market, do not rush to blindly follow the trend; learn and observe more. For those who already hold Ethereum, closely monitor market dynamics and adjust strategies in a timely manner. In this market filled with opportunities and risks, I wish everyone abundant gains!
