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Ethereum Price Analysis: ETH Surges Past $4,000 — Is a New ATH Incoming?
In a remarkable turn of events, the Ethereum (ETH) price has skyrocketed past the crucial $4,000 mark, sparking intense speculation about the possibility of a new all-time high. As the asset’s value touches fresh highs, we dive into the market trends and technical indicators to gauge the likelihood of this ATH.
The primary drivers behind this surge are institutional demand and ETF inflows. With roughly $1.99 billion in net inflows since July, these Ethereum-based Exchange-Traded Funds (ETFs) have brought a wave of buying pressure that is difficult to ignore. This influx has not only fueled the asset’s price but also led to an unexpected 12.3 million drop in ETH reserves on centralised exchanges, indicating reduced selling pressure and strengthened long-term holding sentiment.
On top of this institutional support, corporate treasuries have begun to accumulate record holdings of Ethereum, with some small publicly traded companies now holding nearly one million ETH (worth approximately $3.5 billion), a substantial increase from the 116,000 ETH at the end of 2024. Notably, the aforementioned ETFs, which have pulled $727 million in a single day via BlackRock’s ETHA ETF alone.
In addition to these fundamental factors, a short squeeze also contributed significantly to the recent price acceleration, as over $183 million worth of bearish positions were liquidated when Ethereum climbed towards the $4,200 mark. This forced numerous traders who had bet against the asset to close their positions, generating immense buying pressure and amplifying the upward momentum.
From a technical perspective, Ethereum has broken above a long-term ascending triangle pattern that started in 2021. If this bullish setup sustains its momentum, there is a chance of an extended run toward $6,000-$6,200. As ETH nears the $4,425 mark as an intermediate resistance level, traders are keenly watching for signs of bearish divergence to gauge their risk appetite.
The weekly RSI is currently at 69.6, indicating extremely strong bullish momentum but also teetering on overbought territory. If this indicator rises into the 75-80 range, ETH could potentially see another sharp increase toward $5,500+, although traders should keep an eye out for signs of divergence to gauge their risk appetite.
Furthermore, a rising trend line from 2020 continues to act as crucial support, reinforcing Ethereum’s macro-bullish structure. As long as the asset stays above this line ($3,200), there is little chance that the broader uptrend will break down and potentially see an upside breakout towards $6,000+.
In the event of ETH failing to hold above $4,000, we could witness a corrective pullback toward $3,800 before the next potential attempt at breaking out. However, if the current momentum maintains, Ethereum may be on track to reach multi-year highs.
Source: coinpedia.org
