Ethereum has entered a volatile phase after reaching a multi-year high near $4,790, retracing sharply to the $4,200 level. The correction represents an 11% decline in just a few days, shaking out overleveraged positions and fueling debates among analysts about ETH’s next move. Related Reading: Ethereum Demand Grows As ETFs Break Records With $2.85B Weekly Inflow Some market watchers warn that Ethereum could face a deeper pullback if the $4,200 level fails to hold as support. A breach here could send ETH lower, with traders eyeing the $3,900–$4,000 zone as the next major demand area. This cautious perspective highlights that momentum may be fading after the strong parabolic rally since mid-July. However, a different narrative is emerging. Many analysts argue that Ethereum has already flushed out excess leverage during this drawdown, setting the stage for renewed strength. With demand from institutional flows, strong ETH ETF inflows, and continued whale accumulation, bullish voices believe ETH is preparing for another leg higher — potentially toward new all-time highs above $4,900. Ethereum Grabs Liquidity At Key Price Level Top analyst Ted Pillows recently shared Ethereum’s liquidity heatmap, highlighting the $4,350 zone as a critical level where major liquidity was taken. According to Pillows, this move will determine whether Ethereum can stabilize and build a stronger base for its next rally. He poses the essential question: Will $4,350 be enough for ETH to hold? In the short term, the $4,350 zone now acts as an important pivot. If ETH maintains this level, it could serve as a launchpad for another push toward $4,800 and eventually beyond $5,000. However, a failure to hold could see price retest deeper supports near $4,000, which would prolong consolidation before any further breakout. Supply on exchanges is declining, signaling strong accumulation and reduced selling pressure. Institutional adoption is rising, with ETFs attracting record inflows and major companies adding ETH to their treasury strategies. Regulatory clarity in the US has improved, easing concerns for large-scale investors and legitimizing ETH as a core asset. With these drivers in place, Pillows and many others believe that Ethereum is on a clear path to set new all-time highs above $5,000, once the current volatility settles. The market may be turbulent in the coming weeks, but the broader trajectory still points higher. Related Reading: Bitcoin 30-Day CDD Down: Market Absorbs LTH Selling Without Breaking Support Weekly Chart Analysis: Consolidation Below Resistance Ethereum’s weekly chart shows a decisive pullback after touching $4,790, with the price now retracing to around $4,270. The move represents an 11% decline from the recent peak but comes after an explosive rally that pushed ETH above long-term moving averages, highlighting a shift in market momentum. The 50-week moving average sits at $2,811, while the 100-week and 200-week averages are clustered near $2,788 and $2,443, respectively. ETH’s distance above these levels reflects strong bullish momentum, as the asset remains well supported by its higher trend structure. Historically, when Ethereum trades significantly above these averages, corrections tend to be part of a healthy consolidation before resuming upward movement. Related Reading: Ethereum On-Chain Volume Soars To $13 Billion, Approaching Historic Records Long-term investors may interpret the retracement as a reset of overextended conditions, potentially preparing ETH for another leg higher. If Ethereum stabilizes here, a retest of $4,790 and eventual breakout toward new all-time highs above $5,000 remains a plausible scenario in the coming months. Featured image from Dall-E, chart from TradingView
Ethereum has had a significant expansion in liquidity over the past three months, with aggregated 2% market depth rising from $278.35 million on April 25 to $393.34 million on July 21. This 41% increase comes from a clear buildup in resting orders on both sides of the order book, suggesting heightened participation by market makers […]
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Ethereum just broke above the critical $3,000 level, marking a major technical milestone after surging over 20% since Tuesday. This decisive breakout signals renewed strength in the second-largest cryptocurrency, with bulls reclaiming control after weeks of tight consolidation. The move is reigniting interest across the broader altcoin market, which had remained relatively muted during Bitcoin’s recent rally to all-time highs. Now, with ETH leading the charge, many altcoins are showing signs of reversal and upward momentum. Related Reading: Altcoins Jump Off Critical Support Level – Relief Or Reversal? According to top analyst Ted Pillows, a key factor behind Ethereum’s rally is the large concentration of liquidity resting just above the $3,000 mark. Once Ethereum cleared the $2,850 resistance, momentum rapidly accelerated, driving price through the $3,000 level and into a new range of opportunity. This rally comes amid a broader shift in market sentiment. As Bitcoin sets record highs, Ethereum and other altcoins appear poised to catch up. The big question now: can ETH maintain this level and lead a full altcoin season, or is this just a temporary breakout before another round of consolidation? Ethereum Breaks Out Of Consolidation Range Ethereum has spent the last several weeks consolidating within a clearly defined range that began in early May. The altcoin hovered between support around $2,800 and resistance just below $3,000, with multiple failed attempts to break above. That changed yesterday. ETH finally closed above this key resistance, signaling a potential breakout and confirming the start of a new bullish phase. This move comes as broader macroeconomic conditions improve. Strong labor market data in the US, alongside signs of de-escalation in several global conflicts, have helped reduce uncertainty and reignite risk appetite across financial markets. With Bitcoin reaching new highs and risk-on sentiment returning, Ethereum’s breakout may signal the next wave of upside for altcoins. Top analyst Ted Pillows highlighted a key technical factor: “ETH liquidity is lying above $3,000 — and liquidity is a magnet.” This means that large clusters of buy and stop orders are concentrated above this level, attracting price movement toward those zones. Now that Ethereum has broken past resistance, the presence of high liquidity could accelerate its move upward as traders chase momentum. The breakout also holds symbolic weight. It shows that investors are regaining confidence in Ethereum’s value proposition, particularly with the broader altcoin market showing signs of life. If ETH can hold this breakout and establish $3,000 as new support, the next leg higher could materialize quickly, opening the door to targets in the $3,400–$3,600 range. Related Reading: Ethereum Back At Range Highs: Breakout Above $2,800 Could Ignite Altseason ETH Breaks Major Resistance Ethereum (ETH) has decisively broken above the psychological and technical resistance at $3,000, closing its most recent candle at $3,008.97. This breakout follows a strong 15% daily surge, as seen in the chart, marking a powerful move backed by growing bullish momentum. Volume has expanded significantly, confirming trader conviction and institutional participation in this move. The breakout puts an end to nearly two months of sideways action, with ETH previously locked between the $2,500–$2,850 range. The 200-day simple moving average (SMA), currently near $2,796, was breached with strength, acting as a springboard for price acceleration. The reclaim of this moving average adds technical validation to the breakout and signals the beginning of a new bullish leg. Related Reading: Ethereum Price Action Signals Momentum Shift: BTC Sleeps And ETH Moves ETH is now in a key zone for potential continuation. As long as bulls defend the $2,850–$2,900 level as support, Ethereum has room to rally toward $3,400 and beyond. With Bitcoin trading at all-time highs and macro conditions turning favorable for risk assets, ETH could lead the next wave of altcoin expansion. Featured image from Dall-E, chart from TradingView