Ethereum is showing upward momentum, reaching $3,745 and approaching the significant psychological threshold of $4,000. Investors wonder whether ETH can sustain this trajectory or if a correction is ahead.
Insights on ETH Accumulation
Since the beginning of July, over 317,000 ETH, worth approximately $1.18 billion, have been withdrawn from exchanges. This sharp decline in exchange supply serves as a strong bullish indicator, suggesting that investors prefer to hold ETH for the long term.
Breaking the $4,000 Resistance
$4,000 remains a well-known psychological and technical resistance zone. Ethereum's current price action, just under 7% below this barrier, positions it for a potential breakout. If ETH successfully breaches the $4,000 mark, it could trigger further buying pressure, pushing prices to new yearly highs.
Investor Confidence is Key
The upcoming days are crucial for Ethereum. Sustained accumulation and bullish market sentiment could fuel a breakout beyond $4,000, reinforcing ETH’s long-term uptrend. Conversely, a shift in market sentiment could lead to a temporary correction.
Ethereum remains one of the strongest-performing altcoins in July, reflecting growing confidence in its long-term potential, especially with the rise of decentralized finance and smart contract adoption.
