Ethereum Price News: Could ETH Hit $4,000 After Ripping Past $3K?

After a long wait, Ethereum (ETH) has finally hit the $3,000 psychological threshold and volumes have exploded as a result.

From July 9 to July 11, daily volumes exceeded the $20 billion mark and reached a peak of $36 billion after the token reached this important milestone.

It has been two and a half months since we predicted this major move based on how a historical pattern had been unfolding.

In this Ethereum price prediction from April 29, we said that the price was on track to hit $3,000 after a bullish breakout of a consolidation pattern and upon stepping out of oversold levels in the Relative Strength Index (RSI).

This was the initial prediction:

ETH/USD Daily Chart (Binance) – Source: TradingView

This is where we are now:

ETH/USD Daily Chart (Binance) – Source: TradingView

If you pulled the trigger back then, you booked a 65% return. Not bad at all for a token that was considered dead at some point this year. The Pectra upgrade managed to revive it first and the GENIUS Act provided the remaining fuel needed to get to where we are now.

Now that we are here, we are close to tagging a major area of resistance.

The price will now test its former trend line support from below and this could either result in another significant bearish move if the price action rejects it or it could fully invalidate that pattern and climb higher, possibly eyeing the $3,750 as the next target.

Key Support to Watch at $2,800

Now zooming in a little closer to the latest price action, we can see that this trend line resistance sits at around $3,250 and this would be the key level to watch for the next few days to see how the price action behaves.

ETH/USD Daily Chart (Binance) – Source: TradingView

It is highly likely that ETH will pull back at that level once that trend line is touched. A long-dated trend line like this would normally have a significant influence on the price action.

The key support to watch would be the $2,800 level in this scenario. This area would give us the necessary information to decide if the rally can continue or not. If ETH bounces off that mark, then the market may proceed to hit $3,800 and fully invalidate that trend line resistance.

However, if the price drops below that level, it could mean that bulls have started to capitulate and the uptrend is losing strength. This seems highly unlikely at this point but anything could happen.

Rounding Bottom Also Favors Bullish Outlook

Now, the second interesting chart that I would like to share with you also favors a move to higher ground for ETH. In this case, a rounding bottom pattern has formed and the price action has already broken its neckline.

ETH/USD Daily Chart (Binance) – Source: TradingView

This is also indicative that the next leg up has started. Once again, the $2,800 area pops up as the key support to watch for ETH. We have two confirmed price action setups where this area of support is critical.

Hence, if we retest this level and the price bounces strongly off it, we could see an explosive move that propels ETH to a range between $3,650 and $4,000.

The Relative Strength Index (RSI) has now stepped into overbought levels, which favors a bullish outlook as well as it means that the uptrend is quite strong.

In addition, the 9-day and 21-day exponential moving averages (EMAs) made a bullish crossover above the 200-day EMA.