Ethereum is expected to test $4000, ETH Whale activity shows strong confidence.

Mark Newton of Fundstrat believes that based on technical chart patterns, Ethereum (ETH) could reach $4,000 before the end of July. The current price movement indicates that Ethereum is testing multi-month highs while maintaining strong volume support, suggesting real buying interest rather than a speculative bubble.

Wincent Director Paul Howard stated: "ETFs have led the recent recovery in cryptocurrency prices, with institutional demand for ETH being sluggish, resulting in a decrease in ETH holdings compared to Bitcoin (BTC)."

He continued to point out: "ETH can be said to be the digital oil that supports numerous L2s and transactions, with rich use cases. With decentralized finance (DeFi) and smart contract use cases, deflationary mechanisms, and the yield returns of POS validators, ETH is gradually becoming one of the original veterans."

Why is Ethereum rising?

The upward momentum of Ethereum is driven by multiple factors. Tom Lee from Fundstrat Global Advisors predicts that the mid-term price of Ethereum could reach $15,000, calling it "Wall Street's preferred" blockchain infrastructure.

Lee pointed out that JPMorgan's stablecoin and Robinhood's tokenization plan demonstrate that traditional finance is supporting Ethereum. Ethereum is surpassing its competitors.

The main drivers of Ethereum's rise include unprecedented institutional adoption. Last week, the US-listed spot Ether ETF attracted a record $2.18 billion, with traders dubbing the week as "Cryptocurrency Week" due to the passage of significant legislation. With demand outstripping supply, the influx of this massive capital has pushed Coinbase's ETH reserves close to historical lows.

Lee stated: "First-layer platforms like Ethereum typically require higher valuation multiples because they power the entire ecosystem, similar to how software companies have higher pricing than consumer businesses."

ETH Technical Analysis: Possible Test of $4,000 Level

The ETH/USDT trading pair has just broken through the long-term trend line drawn since the 2021 high, and this breakout lays the foundation for testing the upper boundary of the consolidation range formed since the beginning of 2024 and the important psychological level of 4,000 USDT.

However, the area combines several key resistance points, including the 76.8% Fibonacci retracement level of the downward trend from 2021 to 2022, which has rejected price increases three times.

Therefore, despite the strong upward momentum of Ethereum at present and the potential for further increases, reaching the $4,000 threshold may trigger a more pronounced bearish reaction.

(Source: Trading View)

Whale activity indicates strong confidence

On-chain tracking data shows that over the weekend, a "whale" purchased ETH worth 50 million dollars at an average price of 3,714 dollars. Additionally, cryptocurrency analyst Ali Martinez reported that Ethereum "whales" bought over 500,000 ETH in two weeks, indicating strong confidence among large holders.

Historically, this whale-like buying behavior often precedes significant price movements or ecosystem developments. This accumulation pattern indicates that experienced investors are positioning themselves for long-term gains rather than short-term trading profits.