[Analysts predict Ethereum will soon surpass $4,000]
Ethereum (ETH) has fallen approximately 6.60% over the past week to close to $3,100, tied to the launch of an Ethereum spot ETF. Despite recent volatility, market analysts remain optimistic about Ethereum’s future, predicting that the price could exceed $4,000.
In a July 27 TradingView post, analyst RLinda highlighted that the ETHUSDT chart shows that bulls are actively maintaining price above key support lines. Ethereum is currently in a correction phase, testing the 0.5 Fibonacci retracement level and the 200-day moving average (MA-200).
The fundamental outlook for Ethereum is positive. The Ethereum ETF, launched on July 23, is gaining traction, bringing bullish sentiment to the market. The correction over the past two days has been largely attributed to outflows from Grayscale, a pattern that has also been seen previously with Bitcoin (BTC). On July 26, spot Ethereum ETF net outflows totaled $163 million. Nonetheless, overall Ethereum sentiment remains bullish, driven by strong fundamentals and favorable market conditions.
Furthermore, continued pressure from the Mt.Gox incident was offset by Bitcoin’s strength, which indirectly benefited Ethereum. Technically, Ethereum is forming a correction relative to the 0.5 Fibonacci retracement level of previous bullish momentum while retesting the daily MA-200. The false breakout and subsequent positive buyback signals show a strong buyer base.
The key resistance levels to watch are $3,357 and $3,540. If the price breaks above these resistance levels, it could start a strong rally towards $4,000. Above $4,000, the next significant resistance targets are $4,500 and $4,900. Support is then keyed near $3,200 and MA-200.
Ethereum is currently trading at $3,249, down 0.66% on the daily chart. Despite recent ETF outflows, strong technical signals and fundamental support suggest that Ethereum has a high chance of reaching and exceeding $4,000, with a possible target of $4,500 and above. Investors should closely monitor continued support and a break of the key resistance level at $3,200 to confirm the next bullish phase.
