- Ethereum tests multi-year resistance near $4K after a sharp rally from $1.5K lows.
- MACD shows strong bullish momentum, supporting potential breakout scenarios.
- Long-term charts suggest a possible run toward $12K if bullish structure holds.
Ethereum trades just over $4K, facing strong resistance at $4.2K level . Price action shows strength, but history warns of sharp corrections from this zone.
$4K Resistance Zone Becomes Pivotal
Ethereum is testing a major resistance level near $4.2K after rallying from the 3.8K resistance zone. Historical price action shows this zone has triggered reversals on multiple occasions. Previous peaks here in past cycles were followed by deep pullbacks.
The current rally formed a steep V-shaped recovery with minimal retracements. RSI sits near 65, approaching overbought territory, while past reversals occurred around 70. A trendline connecting RSI peaks suggests potential for a short-term cooldown. Open interest is also pressing against its trendline, which could lead to a temporary dip before further gains.
Short-Term Outlook: Two Key Scenarios
Analysts from Rose Premium Signals outline two possibilities. A clean breakout above $4K could open the path to $5,000–$5,500. Failure to break could see a correction toward $3,200–$3,400 before resuming the uptrend.
On the 4-hour Binance chart, ETH/USDT shows strong bullish MACD momentum since the August 3 crossover. Volume spikes align with upward moves, suggesting active buying. No bearish divergence is visible, and higher highs and higher lows remain intact.
Long-Term Structure Signals Bigger Potential
Captain Faibik on X highlights a breakout from a multi-year symmetrical triangle on the monthly chart.
The move above $3,460 in mid-2025 marks the first monthly close above this resistance since 2021. The pattern’s measured target projects toward $12,000 over the long term, with intermediate resistance around $5,500.
According to CoinMarketCap, total crypto market capitalization rose from $410B to over $500B between August 3–9, underscoring broad market strength.
