Key Takeaways
Ethereum eyes $4,000 amid bullish breakout and whale accumulation. Yet, falling network activity and $46.65M in liquidation risks may hinder momentum unless user growth and volume rebound.
Ethereum’s [ETH] breakout has revived bullish sentiment, with the $4,000 mark emerging as the next key upside target.
Analyst Captain Faibik projects a near-term push to this level following ETH’s break above descending resistance.
This structure shift shows a possible continuation phase, but the price now faces a critical test. Holding above $3,500 could strengthen momentum.
While this level is now the clear upside target, ETH must overcome local selling pressure and maintain buying strength. Therefore, the focus shifts to whether the bulls can complete the breakout with a sustained push.
Can whale accumulation tip Ethereum beyond the $4K resistance?
SharpLink Gaming has maintained its aggressive Ethereum accumulation strategy, recently adding 4,904 ETH worth $17.45 million.
Since the 1st of July, the firm has acquired a total of 157,140 ETH, valued at $493 million, with an average purchase price of $3,136 per ETH.
This consistent buying signals strong institutional confidence in Ethereum’s long-term potential. However, if ETH fails to break above $4,000, and whale inflows slow or reverse, the rally could lose momentum.
For now, the accumulation trend remains intact. Continued buying from major entities like SharpLink will be crucial for absorbing sell pressure and driving ETH past the key psychological resistance level.
Are short-term holders putting Ethereum at risk of a correction?
The Realized Cap HODL Waves (1d–7d) surged to 3.22, at press time, highlighting increased activity among short-term holders.
These market participants tend to respond quickly to volatility, often exiting positions for short-term gains.
While this behavior can drive momentum during rallies, it also increases downside risk during resistance tests. If Ethereum approaches $4,000 and fails to break through, these holders may accelerate a pullback.
Thus, although their participation helps fuel price surges, Ethereum’s ability to hold gains likely depends on whether long-term holders step in to stabilize the market if sentiment shifts.
Is Ethereum losing traction as on-chain activity collapses?
Ethereum’s core network activity has dropped sharply, raising red flags for sustainability. On the 19th of July, transaction count fell to 522K, and network growth plummeted to just 49.6K—the lowest in over six months.
This dual decline reflects both waning engagement from existing users and stalled onboarding of new participants. While prices push higher, such divergence often signals weakness beneath the surface.
Without fresh demand and usage, ETH’s rally may lack the foundation to extend. Therefore, a rebound in both metrics will be essential if Ethereum hopes to maintain its trajectory toward $4,000.
Will liquidation pressure crush Ethereum at $4K?
Binance’s liquidation heatmap reveals dense clusters between $3,800–$4,000, with over $46.65 million in leveraged positions concentrated in that zone.
These areas act as traps—if the price rallies too fast into them, liquidations can cascade and reverse momentum.
However, if bulls manage to absorb the volatility and ETH stabilizes above $3,800, the zone could trigger a breakout instead.
Therefore, Ethereum’s response to this liquidity pocket will determine short-term direction. Volume and order book behavior around this range will be key indicators to watch in the coming sessions.
Can Ethereum conquer the $4,000 mark?
Ethereum’s breakout, whale demand, and market structure suggest it could push past $4,000.
However, drastic drops in network growth and user activity weaken the rally’s foundation. Meanwhile, liquidation risks at resistance heighten volatility.
If buyers maintain strength and volume stays consistent above $3,800, a successful breakout remains possible. But without a recovery in on-chain usage, Ethereum may struggle to hold gains.
Therefore, ETH must pair price momentum with user growth to secure a meaningful advance beyond $4K.
