Ethereum Price Review: Ethereum's Upsurge Starts to Level Off, Possible Avoidance of Hefty Reversal?
Ethereum Stalls Near $4,000 Resistance as Technical Indicators Suggest Short-term Exhaustion
Ethereum (ETH) has been on a rollercoaster ride, recently surging above the $3,000 mark, driven by strong institutional interest. However, technical indicators suggest a possible short-term pause or minor pullback before further upward movement.
Currently trading around $3,700, Ethereum is facing resistance near the $3,800–$3,900 range. The Relative Strength Index (RSI) at 82.66 indicates overbought conditions, suggesting a potential short-term pullback to $3,550–$3,600 before resuming its upward momentum.
Multiple rejections from the $3,800 area have been observed, and a clean breakout and daily close above this level is required to confirm the move. If the bulls fail to push past $3,800 with strength, a deeper pullback into the $3,300 range may occur.
The recent breakout from the $2,800 zone has triggered a clean rally, with the price currently trading around $3,660. This rally has pushed ETH above both the 100 and 200-day moving averages, which are located around $2,500.
On the 4-hour timeframe, ETH is showing bearish divergence between price and RSI, with the RSI dropping to around 50, showing a loss of short-term bullish pressure. The latest daily candles are showing upper wicks, indicating selling pressure.
Despite the uptick in funding rates, they are still far from the extreme highs seen at major market tops in the past. Until ETH breaks above $3,800 with a convincing candle and volume, it's more likely to consolidate or retrace in the short term.
A key level to watch is the $3,300 area, which could serve as support if the price pulls back. The $3,200 level is the nearest strong support on the 4-hour chart.
The medium to longer-term outlook remains optimistic with potential targets well above $4,000, possibly reaching into the five-figure range by year-end if bullish conditions persist. Established analysts have forecast Ethereum hitting $4,000 by late July 2025, with more bullish projections ranging from $6,000 up to $15,000–$20,000 by the end of the year.
These projections incorporate factors like Ethereum’s dominance in smart contracts, tokenization, staking yields, and institutional adoption. Continued growth in Layer-2 solutions (Arbitrum, Optimism) and upgrades like the Dencun hard fork, improving gas efficiency, support long-term bullishness. However, traders should be cautious about profit-taking near psychological price levels and short-term RSI overbought signals.
In summary, Ethereum’s recent rally above $3,000 is supported by solid fundamentals and institutional interest, but current technical signals suggest a possible short-term pause or minor pullback before further upward movement. Key levels to watch include $3,800 for a potential breakout and $3,300 for potential support if the price pulls back.
- Bitcoin and other cryptocurrencies, such as Ethereum, have witnessed a surge in institutional interest, driving their prices up.
- Technical analysis is crucial for determining the short-term movement of digital assets like Bitcoin and Ethereum, with indicators like the Relative Strength Index (RSI) offering valuable insights.
- Beyond the short term, analysts forecast the price of Ethereum to hit $4,000 by late July 2025, with bullish projections reaching up to $15,000–$20,000 by the end of the year, fueled by factors like smart contracts, tokenization, staking yields, and institutional adoption.
