What to Know:
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Ethereum has failed to break the $4K level four times, raising concerns about a potential correction.
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While whales are accumulating ETH, technical indicators show overbought conditions and declining volume.
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A breakout above $4K could spark a new altcoin season; another rejection might lead to a drop toward $2,800 or lower.
Ethereum has failed to break through the $4,000 resistance once more. This is the fourth time it has turned back at this price. When the market fails over and over again, investors and experts worry that it’s not ready for another big rally or that a correction is on the way.
$4,000 Is Ethereum’s Decision-Making Level
Last week, it was reported that Ethereum has struggled with the $4,000 resistance level for over three years now. Every approach toward this number has been met with heavy selling pressure, pulling ETH back into its longer-term range between $1,300 and $3,900.
Crypto analyst “The Alchemist Trader” calls $4,000 a “high-timeframe barrier” and a key level that will determine ETH’s next major move. “Ethereum has now entered a decisive stage while testing the upper boundary of a long-standing range,” the analyst noted. If this level is broken, it could start a new altcoin season and give bullish momentum a boost.
But until that happens, ETH is still a high-risk area for traders. The last rejection in December 2024 caused a 60% drop in price over the course of several months, with the lowest point being around $1,500. If history repeats itself, we might see another big drop.
Whale Accumulation vs Overheated Technicals
Despite these resistance struggles, on-chain metrics show a strong wave of accumulation. Recently, whale wallets have been snapping up ETH at record levels. Last month, data highlighted by Crypto Rover confirmed a surge in large-scale ETH purchases. “Whale buying is at all-time highs,” said Rover, suggesting many are preparing for a breakout.
However, not everyone is convinced. Technical analysts are beginning to wave caution flags. ETH recently fell from $3,900 to around $3,650, with some traders calling it a warning sign. “ETH has now outperformed BTC for 14 consecutive days,” noted X-based analytics account Front Runners, “but RSI is overheated, and sentiment has turned euphoric.” Renowned analyst Michaël van de Poppe added, “ETH dropped to around $3,650. A violent correction could be next.” Andrew Crypto echoed these thoughts, commenting: “A chart without a correction isn’t a healthy chart.” Despite recent strength, many experts agree a pullback might be necessary before any sustainable breakout.
Momentum Builds at $3,700
As of this writing, Ethereum is currently trading at $3,700, which is a 2.68% increase in the last 24 hours. But the trade volume has dropped by 10.8% in the same time period, which could mean that short-term momentum is slowing down. Spot ETH ETFs saw inflows rise again, bringing in $35.12 million after days of large outflows.
On-chain activity also looks good: whale wallets bought 138,000 ETH (worth more than $500 million) in a week, and Ethereum handled a record-breaking 3,579 transactions per second.
What Happens Next?
If ETH finally breaks above $4,000, analysts think the next stop could be $4,500 and then $5,000, which is a new all-time high. On the flip side, another rejection might push ETH back toward the $2,800–$3,200 region, or even as low as $1,500 if sentiment turns bearish.
For now, the market sits in a tense consolidation phase. “Until a decisive move occurs, traders should remain cautious and reactive rather than overly anticipatory,” said The Alchemist Trader. The next few weeks could be critical in shaping ETH’s medium-term future.
Final Thoughts
Ethereum’s repeated failure to break through the $4,000 mark is a problem both technically and mentally. Whale buying and long-term institutional interest are good signs, but the fact that this barrier hasn’t been broken four times now could mean that the market is weak.
How the rest of the market feels, macroeconomic signals, and clear rules will play a big role in whether ETH will finally break free or have another big drop. For now, being careful and patient might be the best thing to do.
Also Read: Cosmos Health Secures Major Funding for Ethereum Treasury Reserve Rollout
