Ethereum is drawing attention from traders as it tests the critical resistance zone at $4,000. The specific conditions and technical indicators suggest a possible breakout.
Retesting the $4K Zone
Ethereum (ETH) is once again knocking on the door of the $4,000 supply zone, a key resistance level that has held firm in recent weeks. On the daily chart, ETH is now retesting this zone with strength, and bulls are eyeing a potential breakout that could push it into new highs.
Short-Term Consolidation Before the Breakout
Analysts expect a brief correction or consolidation phase before any major breakout occurs. ETH may experience minor pullbacks as it absorbs selling pressure from this supply zone. However, the structure remains bullish, and each dip is being quickly bought.
Reasons Behind the Possible Breakout
Ethereum’s fundamentals continue to improve, with rising network activity, ETH staking at all-time highs, and growing institutional demand. Coupled with bullish on-chain metrics and market-wide momentum, the setup favors a breakout. The $4K level has become a psychological battleground, and as ETH continues to retest it, the resistance may soon give way—turning this supply zone into fresh support.
Ethereum continues to focus on the $4,000 level, and given the current fundamental and technical conditions, a possible breakout at this level could lead to new highs.
