Ethereum Reaches $3.8K After Recovering Key Trendline, Indicating Potential $4K Spike
Ethereum (ETH), the second-largest cryptocurrency by market capitalisation, is currently trading around $3,835, as it approaches a key threshold at $4,000. This level has been a consistent resistance for Ethereum in the past, with three major rejections occurring at this price point in the past.
A horizontal resistance line at $4,000 is a key threshold for ETH, and if it breaches this resistance, it could validate the setup shared by Cowen, a well-known chart analyst. The focus is now on whether the return to the lower ascending channel was the missing step all along for a potential breakout of the $4,000 resistance.
Benjamin Cowen's chart analysis suggests a potential breakout for Ethereum, based on the return to the lower ascending channel. The chart, which is based on data from the Kraken exchange and covers Ethereum's weekly candles from mid-2021 to July 2025, shows three clear rejections of ETH at the $4,000 level, marked with arrows and annotations.
The community responses indicate optimism mixed with curiosity about Ethereum's next move. The market is closely watching Ethereum's trajectory as it is at a potential turning point. If ETH breaks through the $4,000 resistance, it would need to maintain momentum above this level.
The key factors influencing a potential Ethereum breakout above the $4000 resistance after reclaiming a major trendline include strong institutional accumulation, significant ETF inflows, bullish technical patterns such as widening wedge and ascending triangle formations, and positive on-chain metrics indicating growing liquidity and adoption.
Ethereum’s position within its historical four-year cycle "Banana Zone," which has preceded major bull runs, is another important factor. Technical indicators such as MACD crossovers and monthly candle closes that support near-term breakout scenarios at or above $4000 also play a significant role.
Market sentiment is responding to potential catalyst events like BlackRock's Ethereum ETF staking approval, which could enhance liquidity and reduce selling pressure. Analyst projections point toward parabolic growth phases with price targets ranging broadly from $7000–$8000 this year up to $15,000–$17,000 and beyond by 2026, based on scaling adoption and DeFi/Web3 expansion.
In summary, a confluence of strong institutional demand, ETF-related liquidity inflows, bullish chart patterns, improving on-chain fundamentals, and positive market sentiment driven by potential regulatory or product approvals are the primary factors that could push Ethereum decisively above the $4000 resistance level following its recent trendline reclaim.
Volume, market sentiment, and broader crypto conditions will now play a critical role in Ethereum's trajectory. Cowen's post on the potential breakout of Ethereum gained over 295,000 views and nearly 6,600 likes on X (formerly Twitter). The green ascending channel serves as a long-term accumulation band or support base for ETH, and ETH has recently revisited and bounced off this channel.
As Ethereum approaches the $4,000 resistance, the crypto market eagerly awaits to see if the digital asset will break through this barrier and potentially push towards new all-time highs.
- The current focus in crypto finance is on whether Ethereum, the second-largest cryptocurrency, can breach the horizontal resistance line at $4,000, a key threshold, following its return to the lower ascending channel, which could be a potential setup for a breakout.
- Technical analysis by Cowen, a chart analyst, hints at a potential breakout for Ethereum, considering the strong institutional accumulation, significant ETF inflows, bullish technical patterns, and improving on-chain fundamentals.
- If Ethereum manages to break through the $4,000 resistance and maintain momentum above this level, it could potentially push towards new all-time highs, inspired by factors such as positive market sentiment, regulatory or product approvals, and the confluence of bullish chart patterns and improving on-chain fundamentals.
