Ethereum Eyes $4,000 as Bullish Momentum Builds
Ethereum is showing strong signs of a bullish breakout, with analysts pointing to a potential rally toward the $4,000 mark, according to Cointelegraph. A key driver of this optimism is the emergence of a “bull flag” pattern on the daily chart—a technical formation often signaling continued upward momentum.
This bullish sentiment is supported by a surge in Ethereum network activity and an increase in total value locked (TVL) in its smart contracts. Transaction fees have risen significantly, suggesting higher user engagement across decentralized finance (DeFi), non-fungible tokens (NFTs), and other decentralized applications (DApps).
Between May 6 and May 23, the price of Ether (ETH) jumped nearly 56%, climbing from a low of $1,750 to an eight-week high of $2,734. During the same period, daily transaction volume surged 37%, reaching levels not seen since January 2024. On May 22, average transaction fees hit a 90-day high of 0.0005 ETH (approximately $1.33).
Ethereum’s TVL also saw a significant jump, climbing over 44% in just under a month—from $45.26 billion on April 22 to $65.3 billion on May 23. This growth has been fueled by major gains across DeFi protocols such as Pendle (up 51% in deposits), Ether.fi, and EigenLayer (each up 48%). Ethereum remains the dominant smart contract platform, commanding 54% of the total TVL across layer-1 blockchains—far ahead of Solana (8%) and BNB Chain (5%).
In addition, U.S.-listed spot Ether ETFs recorded $249 million in net inflows between May 13 and May 22, adding further demand-side momentum to ETH’s rally.
Technical analysts suggest that if ETH maintains support above $2,400, the next major targets could be $3,500 and $3,600. Crypto analyst Michael van de Poppe emphasized that holding this key level could strengthen the case for a move toward $4,000.
As always, this article is not intended as investment advice. Readers are encouraged to conduct their own research before making financial decisions.
