Ethereum Breaks $4,000 Again: How Did It Happen and Can ETH Go Higher?
Ethereum (ETH) broke above the $4,000 mark last week for the first time since late 2024, peaking at around $4,249 — a significant technical and psychological milestone. Over $200 million in short liquidations accelerated the rally, alongside strong inflows from institutional capital. We‘ll explore Ethereum‘s recent journey, how it unfolded, and what the expectations are for ETH‘s price moving forward.
Technical breakouts also played a crucial role. Ethereum‘s price had long struggled to push through the $4,000 resistance level, but once that barrier was broken, a chain reaction followed. Traders and algorithms, closely monitoring these key levels, responded quickly — boosting both volume and price. This also triggered the liquidation of numerous short positions — totalling more than $200 million — which added even more fuel to the upward momentum.
Short positions are typically opened by traders who bet on the price going down. When the opposite happens and the price rises, these positions are quickly closed to prevent further losses. This creates additional buying pressure, pushing the price up even more, which in turn causes further liquidations — a self-reinforcing cycle.
On the charts, analysts spotted a range of bullish signals. One of them was the well-known Fibonacci extension, which pointed to potential room for further upside. This popular technical tool estimates how far a price might climb following a previous move. In ETH‘s case, it suggested price targets around $4,800 — and potentially $5,500 or higher if the trend remains strong.
In addition, Ethereum has been trading within a steadily rising channel — a pattern where both highs and lows gradually move upwards. This is typically seen as a sign of a healthy, sustained upward trend. As long as ETH remains within or above this channel, many technical analysts believe further growth is possible, with $4,800 as the next key level.
Hyper-bullish targets:
Trader Merlijn notes that ETH has been moving within a rising channel that stretches from $100 to $4,000. A third touch of the upper trendline could propel ETH to $20,000 — representing a potential 375% increase.
AI-powered predictions:
Analyst Miles Deutscher, using AI modelling, predicts ETH could reach $7,500–$15,000 by 2026, depending on broader market conditions.
Short-term technical outlook:
Analysts from CryptoOnchain (via TradingView) suggest a short-term target of $4,800, should ETH break resistance above $4,400.
Market cycle rotation:
A phased rotation is also being suggested, with the following roadmap:
Still, caution is being advised. Excessive optimism, enthusiasm, or fear of missing out (FOMO) can have the opposite effect, leading to short-term price corrections or periods of consolidation.
Disclaimer: This is not financial advice. Always do your own research and seek professional guidance.
Why Has Ethereum Risen So Sharply?
A key driver behind this surge in Ethereum (ETH) is the growing interest from major investors and corporations. These players increasingly view Ethereum as a valuable long-term investment — not only for the underlying technology, but also as a strategic asset within their portfolios. While Bitcoin traditionally held this role, ETH is now solidifying its own position as a serious digital asset.Technical breakouts also played a crucial role. Ethereum‘s price had long struggled to push through the $4,000 resistance level, but once that barrier was broken, a chain reaction followed. Traders and algorithms, closely monitoring these key levels, responded quickly — boosting both volume and price. This also triggered the liquidation of numerous short positions — totalling more than $200 million — which added even more fuel to the upward momentum.
Short positions are typically opened by traders who bet on the price going down. When the opposite happens and the price rises, these positions are quickly closed to prevent further losses. This creates additional buying pressure, pushing the price up even more, which in turn causes further liquidations — a self-reinforcing cycle.
On the charts, analysts spotted a range of bullish signals. One of them was the well-known Fibonacci extension, which pointed to potential room for further upside. This popular technical tool estimates how far a price might climb following a previous move. In ETH‘s case, it suggested price targets around $4,800 — and potentially $5,500 or higher if the trend remains strong.
In addition, Ethereum has been trading within a steadily rising channel — a pattern where both highs and lows gradually move upwards. This is typically seen as a sign of a healthy, sustained upward trend. As long as ETH remains within or above this channel, many technical analysts believe further growth is possible, with $4,800 as the next key level.
What Are Analysts Saying: Multiple Scenarios
- ETH-led altcoin rally;
- Rotation into Bitcoin (possibly pushing BTC to $120k–$140k);
- Return to ETH and smaller altcoins with a potential “blow-off” rally.
Still, caution is being advised. Excessive optimism, enthusiasm, or fear of missing out (FOMO) can have the opposite effect, leading to short-term price corrections or periods of consolidation.
Conclusion
Ethereum has made an impressive comeback by breaking through the $4,000 mark once again. Supported by institutional interest, technical strength, and a positive market structure, there still appears to be room for further growth. Analysts outline a wide range of possibilities — from a moderate rise to $4,800, to explosive longer-term targets of $15,000 or even $20,000.Disclaimer: This is not financial advice. Always do your own research and seek professional guidance.