Ethereum ($ETH) is at a decisive point as experts weigh in on whether the cryptocurrency is gearing up for a run to $7,000 or preparing for a steep correction.
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ETH Breaks $4,000 — Bulls in Full Control
For the first time since December, Ethereum has crossed the $4,000 mark, hitting a weekly high of $4,329. It’s currently trading at $4,303 — up 19% in just a week and boasting a massive 190% gain since the start of the year.
A breakout from a multi-year megaphone chart pattern has propelled ETH above all major moving averages. The 50-day MA has overtaken the 200-day MA, and the MACD remains bullish. If momentum holds, a climb to $7,000 (about 62% higher) is on the table, with only a 12% gap to surpass its all-time high.
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Key Liquidation Levels to Watch
CoinGlass data reveals significant liquidation clusters in the $4,200–$4,300 zone, and more pressure points between $4,400–$4,500. These levels could attract price action in either direction.
On the downside, support lies between $4,100–$4,150. A drop below could trigger heavy liquidation events, accelerating a fall.
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Institutional Inflows Hit Record Levels
Ethereum ETFs saw $1 billion in net inflows yesterday — the largest single-day amount since launch. After weeks of low activity, institutional investors appear to be re-entering the ETH market.
However, Glassnode reports that short-term holders are selling more aggressively than long-term investors, signaling expectations of a near-term dip.
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Macro Events Could Decide ETH’s Next Move
This week’s economic releases — CPI on Tuesday, PPI on Thursday, and retail sales on Friday — could sway the market. If inflation continues to decline and the Federal Reserve hints at earlier rate cuts, crypto markets could see another surge.
Meanwhile, Bitcoin’s recent jump to $122,000 left a CME gap around $117,200. Since such gaps are often closed, a Bitcoin pullback could also weigh on Ethereum prices.