Ethereum Approaches $4,000—Analysts Watch for Either Rally or Reversal

Ethereum Retreats Toward $3,650 as Analysts Debate Next Move to $4,000

Ethereum’s recent rally showed signs of exhaustion on Monday, with ETH falling more than 3% to around $3,696. While bullish momentum remains supported by strong whale accumulation and positive sentiment, several analysts are warning the market may be overheated and due for a correction.

The drop followed a two-week surge in which ETH consistently outperformed Bitcoin, sparking renewed optimism about a push toward $4,000. However, technical indicators now suggest a potential pause. According to crypto analytics outlet Front Runners, Ethereum has outpaced BTC for 14 straight days—an unusual run that they say is “unsustainable without a period of consolidation.” They added that the Relative Strength Index (RSI) is flashing overheated conditions.

Well-known trader Michaël van de Poppe noted the recent move down to $3,650 could lead to a “violent correction,” while analyst Andrew Crypto warned that despite ETH’s strong uptrend, the rejection near resistance may signal the need for a short-term reset. “A chart without a correction isn’t a healthy chart,” he added.

Still, optimism hasn’t faded entirely. Back on July 8, Crypto Rand projected ETH would reach $4,000 “sooner than later.” Whale behavior appears to back that view. According to on-chain data from CryptoQuant, ETH accumulation among large holders is at all-time highs.

Institutional buying continues as well. On Monday, SharpLink Gaming (SBET)—a leading public ETH holder—disclosed it had added 79,949 ETH to its reserves in the week ending July 20. The company now holds 360,807 ETH and has over $96 million in capital reserved for additional purchases.

Despite the short-term pullback, Ethereum remains up nearly 20% over the past month and continues to trade near multi-month highs. Whether the rally resumes or pauses for further consolidation may depend on how price reacts around the key $3,650–$3,700 support zone.

Technical Snapshot

• Price Movement: ETH dropped 6.11% over 24 hours, falling from a session high of $3,851 to an intraday low of $3,624.
• Volume Surge: Trading activity jumped to 353,275 ETH—well above the daily average of 265,000.
• Resistance: Multiple rejections around $3,730–$3,740 capped recovery attempts.
• Support Breakdown: Key zones at $3,690, $3,670, and $3,650 were breached amid high-volume selling.
• Closing Weakness: ETH ended the session near its lows at $3,647, confirming short-term bearish momentum.

At the time of writing, ETH is trading at $3,696, down 3.44% on the day.