- Ethereum has surged 56% in one month, approaching the key $4,000 resistance level that could trigger profit-taking.
- Analysts expect a possible pullback to $2,900, viewing it as a healthy correction before further gains.
Ethereum has shown remarkable strength recently, rising 56% in just one month and edging closer to the crucial $4,000 resistance level. This milestone is psychologically significant for many traders and often triggers profit-taking, which could lead to a short-term price correction before any further upside.
The Challenge of the $4,000 Ethereum Price Mark
The $4,000 price point has historically acted as a major resistance in Ethereum’s market cycles. Many investors see it as a key threshold and tend to sell to lock in gains once this level is approached. Crypto analyst Michaël van de Poppe warns that Ethereum is unlikely to break through this barrier immediately. He expects a pullback to occur, describing it as a healthy market correction that helps rebalance overextended long positions and frees up liquidity for future growth.
An update on $ETH.
It's getting into crucial resistance zones ($4,000 area has been a remarkable resistance for the past few years).
I don't think we'll break through it in one go.
I think we'll have a correction first to take liquidity on the long side.
That dip is crucial… pic.twitter.com/81RMXzrIPz
— Michaël van de Poppe (@CryptoMichNL) July 21, 2025
Recent Market Activity and Analyst Views
Ethereum’s price surged about 24% just last week and has gained an impressive 60% over the past month. The network’s market capitalization now stands near $461 billion, accompanied by a 31% jump in 24-hour trading volume to roughly $44.6 billion. This increased activity signals strong investor interest.
Analyst Follis draws parallels to Ethereum’s price action earlier this year when a swift 80% rise was followed by a 26% correction. He suggests a similar correction could bring the price down to around $2,900—a roughly 25% drop from current levels. While such a decline might seem alarming, experts agree it’s a natural and healthy part of market cycles.
The Importance of the $2,900 Support Level
If Ethereum pulls back to $2,900, analysts view this as a key support and a strategic entry point for buyers who missed out on earlier gains. Van de Poppe sees such corrections as foundational, helping to strengthen Ethereum’s market structure and prepare it for a potential new upward phase.
$ETH is massively outperforming Bitcoin in Q3.
If this trend continues, your Altcoins will explode. pic.twitter.com/7l9XEKX33a
— Ted (@TedPillows) July 21, 2025
Meanwhile, some analysts like Ted believe Ethereum could maintain its momentum around $4,000, especially as Bitcoin’s recent price increase tends to bring capital into altcoins like Ethereum. This capital rotation might keep Ethereum’s price stable or push it higher in the near term.
Ethereum Outshining Bitcoin and the Altcoin Ripple Effect
Ethereum has outperformed Bitcoin significantly, with a 52.43% gain in Q3 2025 compared to Bitcoin’s 10.98%. This strong performance could attract more attention to other altcoins. Historically, when large investors take profits from Ethereum, they often reinvest in smaller projects, potentially sparking fresh rallies across the altcoin market.
Ethereum’s recent surge is impressive, but traders should watch the $4,000 level closely for signs of a healthy correction. Whether it pulls back or stabilizes, these moves are shaping the foundation for Ethereum’s next chapter in 2025.
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