Ethereum shows signs of a potential bullish reversal as its price approaches the critical $4,000 resistance level. The weekly chart reveals a descending broadening wedge formation, typically indicating a shift from bearish to bullish market sentiment as the pattern nears completion.
On-chain metrics reinforce the optimistic outlook with ETH/BTC exchange inflows at five-year lows, signaling dramatically reduced selling pressure. Concurrently, Ethereum spot ETFs have recorded substantial inflows totaling $332.2 million, establishing strong support between $2,000 and $3,000 price levels.
Technical analysis identifies key resistance near $4,000, with successful breakout projections targeting prices exceeding $6,000 based on Fibonacci retracement levels and momentum indicators. The asset’s 52% price appreciation over recent trading periods further bolsters confidence in Ethereum’s upward trajectory potential.