Ethereum just reminded the market who’s in charge. After defending the critical $4,000 liquidity zone, $ETH blasted toward $4,880, brushing against its all-time highs and putting bulls firmly back in control.
What sparked the move? Two forces combined:
Macro tailwinds from Jackson Hole, where Powell’s dovish signals fueled expectations of liquidity expansion and a 75% chance of September Fed cuts.
On-chain structure, where stacked Fair Value Gaps (FVGs) between $4,420–$4,600 acted as institutional demand zones, allowing buyers to step in at every dip.
📊 The Bullish Case
Ethereum flushed $4,000 liquidity, then surged into $4,880 textbook liquidity sweep mechanics.
Strong bids continue to defend FVG demand zones, keeping momentum alive.
A clean break above ATHs at $4,880 opens the door to:
🎯 $5,200–$5,500 (range expansion)
🎯 $5,800 if macro easing aligns with bullish momentum
🐻 The Bearish Threat
Failure to close above ATHs risks turning those FVGs into supply zones.
Key breakdown levels:
⚠️ Below $4,350 → weakens demand, exposes $4,000 liquidity.
⚠️ Macro risk-off → could drag ETH to $3,750–$3,800.
📌 Traders’ Roadmap
Bullish Play: Defend $4,420–$4,600 FVGs, break and hold $4,880 → Target $5,500.
Bearish Play: Lose FVGs, fail ATH breakout → $4,000 liquidity magnet in sight.
Ethereum is now at a tipping point. The next few sessions around $4,880 will decide if this is the true breakout into a new expansion leg or a carefully staged liquidity trap before a sharp reversal.
🔥 All eyes on $ETH
