Ethereum (ETH) traders are closely watching price movements, with many predicting a retest of lower support levels before a potential breakout towards $4,000. Several factors are influencing this outlook, including technical analysis, market sentiment, and institutional activity.
Currently, Ethereum is trading near $3,908. After a strong rally in July, which saw ETH rise significantly, some analysts believe a period of consolidation or a slight pullback is likely before the next major upward move. This expectation is based on the observation that ETH moved from $2,000 to $3,800 in a short period without any significant retracements, making a correction a normal and healthy development.
Several support levels are being monitored. Key support is identified around $3,700, with major support lying in the $3,550 - $3,600 range. A failure to hold above the $3,400 level could lead to short-term consolidation between $3,200 and $3,300, though the broader trend remains bullish as long as ETH stays above the $3,000 mark. Some analysts suggest that a drop to between $3,550 and $3,600 could set up a stronger rebound. A clear move below $3,800 could push the price towards $3,750 or potentially $3,700 in the near term. The next key support level is located at $3,640.
On the upside, ETH faces immediate resistance near the $3,900 level. A decisive break above $4,000 is seen as a crucial step towards further gains. Clearing the $3,920 resistance could open the path toward the key $4,000 resistance area. If Ethereum price clears the $3,920 resistance level, the next target sits at $3,950. A move above that zone could open the path toward the key $4,000 resistance area. An upside break above the $4,000 resistance might call for further gains toward $4,050 or even $4,200 in the near term. A successful breakout could drive the price toward $4,300 and $4,500.
Technical indicators provide a mixed picture. The Relative Strength Index (RSI) has been elevated, suggesting overbought conditions and a potential for short-term consolidation. However, other indicators, such as the Moving Average Convergence Divergence (MACD), signal a continuation of bullish momentum. The daily EMAs have started to go parabolic with RSI 87, which is an early sign of overbought conditions, but an asset can remain in this condition for a longer time interval.
Institutional interest in Ethereum remains strong, as evidenced by significant inflows into spot Ethereum ETFs. BlackRock's iShares Ethereum ETF (ETHA) has seen its assets under management (AUM) grow rapidly, reaching over $10 billion. Large purchases of ETH by entities like SharpLink Gaming also indicate confidence in Ethereum's future.
Looking ahead, analysts are optimistic about Ethereum's long-term prospects. Predictions suggest that ETH could reach $4,000 within the next 3-5 days, provided bullish momentum continues and ETF-driven inflows sustain. Some forecasts suggest ETH could climb to between $4,000 and $4,500 by the end of September 2025. If positive ETF inflows persist and macroeconomic conditions align, Ethereum may breach the $7,000 mark by year-end. Ethereum price is anticipated to close 2025 with a price range of $3500 to $3700, marking its yearly high.
Overall, the prevailing sentiment among traders is cautiously optimistic. While a retest of lower support levels is considered a possibility, the underlying fundamentals and growing institutional interest suggest that Ethereum is well-positioned for a potential breakout to $4,000 and beyond.
