Ethereum is nearing the critical $4,000 price threshold after a 27% rally lifted its value to $3,745, driven by significant investor accumulation. Market data reveals over 317,000 ETH has been withdrawn from exchanges since early July, substantially curtailing immediate sell-side pressure and signaling strong holding sentiment among investors.
The $4,000 barrier represents a pivotal psychological and technical resistance level. Successfully breaching this milestone could catalyze sustained bullish momentum, while rejection risks a pullback toward the $3,530 support zone. Despite robust market confidence, historical patterns suggest profit-taking activities near this resistance may trigger a short-term trend reversal.
Technical indicators reinforce caution as Ethereum’s Network Value to Transactions (NUPL) ratio approaches the ‘Belief-Denial’ territory—a range historically linked to market turning points. A conclusive breakout above $4,000 is required to validate continued upward movement; failure to maintain support levels risks accelerating corrective declines across the market.