- Ethereum holds $4,000 as strong support, with analysts eyeing potential move toward $5,000.
- Oversold RSI signals bullish setup; last similar condition led to a 134% rally in two months.
- Whale accumulation and rising staking show strong institutional demand despite ETF outflows.
Ethereum is trading around $3,992, showing strong resilience at the $4,000 support zone. According to analysts, this level was once resistance but has now flipped into support. As long as ETH holds this price area, the broader uptrend remains intact, with projections pointing toward potential moves into the $5,000 range.
ETH Defends Support At $4,000
Kamran Asghar, a well known crypto analyst noted that Ethereum is holding the line at a critical support and resistance flip near $4,000. He noted that the old resistance has now become strong support, stating, “As long as we hold this level, the uptrend is fully intact.”
The Ethereum chart shows that price broke out of a descending channel in July near $2,800 and climbed above $4,500 in August. Following this rally, ETH retraced but stabilized near $4,000, where buyers stepped in to defend the zone. A dotted projection line shows potential recovery toward $4,750 if momentum continues.
According to an observation by Lark Davis, Ethereum’s relative strength index (RSI) is in its most oversold condition since April. He noted, “The last time ETH was this oversold, it rallied 134% in two months.” Davis added that holding the $3,800–$3,900 area is key for bullish continuation.
Institutional Activity And Market Outlook
Despite ETF outflows of $796 million in one week, Ethereum continues to show strong on-chain accumulation. Beaconchain data recorded 2,589 ETH staked in a single day, worth around $11 million, pushing total ETH locked in staking to 35.7 million. This reflects structural demand supporting the token at current levels.
Market observations show large-scale whale activity. One whale realized $8.97 million in profits through a Kraken transfer, while BitMine Technologies increased exposure by $1 billion. Lookonchain reported that 15 wallets accumulated 406,117 ETH worth $1.6 billion over two days, suggesting long-term confidence despite short-term selling.
Technical analysis indicates that holding above $4,000 may allow ETH to test $4,750–$5,000 in the near term. If selling pressure persists, the $3,750 level offers the next major support. Analysts suggest that the bounce potential remains strong while the $4,000 base continues to hold.
