After posting its strongest monthly rally in three years, Ethereum (ETH) has hit a wall near $4,000. The asset dropped nearly 6% in the past 24 hours to $3,630, per CoinMarketCap, signaling renewed sell pressure at a well-known resistance level.
July saw ETH rise over 50%, driven by growing spot ETF inflows and institutional demand. Spot ETH ETF holdings now stand at $21.85 billion, and corporate reserves have climbed past $10 billion. Yet, despite this bullish backdrop, ETH’s momentum stalled near $4,000—a price zone where traders historically unload.
Technical analyst Crypto Fella highlights that ETH has cleared major resistance zones between $2,600 and $3,500. However, the $3,800–$4,000 region remains heavy with sell orders. Failure to push through could lead ETH back to the $3,300–$3,500 area in the short term, although support remains strong above $2,900.
Merlijn The Trader draws parallels to ETH’s 2021 run, where a similar pattern led to a massive surge toward $8,000+. He sees this recent pullback as a possible setup for another explosive move—if bulls regain control.
Ethereum now faces a defining moment. A clean break above $4,000 could unlock the next major leg up—or signal short-term exhaustion.\
You might also like: 15-Year-Old Bitcoin Wallets Move $30M as BTC Nears All-Time High
