- Ethereum trades near $4K after multiple past rejections, testing a supply zone that has consistently halted previous bullish runs.
- Strong upward momentum and rising volume suggest bulls are in control as price structure tightens beneath the critical resistance level.
- Ethereum’s open interest dominance nears 40%, indicating capital rotation from Bitcoin and heightened trader activity focused on ETH markets.
Ethereum is once again approaching the $4,000 supply zone, a level that has historically acted as a formidable resistance.
Ethereum Retests Historical Resistance at $4K
Ethereum is trading within the $3,750–$3,900 range, closing in on the widely watched $4,000 barrier. According to Alex Clay, the asset is currently retesting a critical multi-touch resistance zone that has triggered several rejections over the past year. The $4K zone has functioned as both a psychological and technical hurdle for Ethereum in previous rallies.
The daily chart reveals multiple failed breakout attempts at this level, marked by heavy institutional selling pressure. These repeated rejections highlight the $4K range as a heavily contested supply zone. Nonetheless, Ethereum has demonstrated a fresh burst of energy, characterized by a solid bullish formation, a further consistent positive trend, and an increase in market trading volumes.
Bullish Structure Signals a Potential Break
The current market structure differs from past attempts. A steep incline with minimal pullbacks has so far supported Ethereum’s rally into the $4K area. Momentum appears stronger than in previous cycles, suggesting that bullish sentiment is gaining traction. This behavior change could indicate a potential shift in how the market approaches this resistance zone.
Clay noted the possibility of a brief correction or consolidation just below $4K as traders take profits and new entrants prepare for potential upward continuation. If Ethereum breaks through this supply wall and sustains its price above the $4,000 mark with strong volume, a move toward the $5,000 level may follow.
Open Interest Dominance Adds to Uptrend Outlook
Adding to the bullish case, market analyst Ak47 (@HolaItsAk47) pointed out that Ethereum’s open interest dominance is nearing 40%, the highest level since April 2023. Historically, only 5% of trading days have recorded a higher figure. This metric shows growing market participation centered around Ethereum, rather than Bitcoin.
The rising dominance in open interest reflects a visible capital rotation from BTC to ETH. As speculative momentum shifts, market participants continue to focus on Ethereum’s performance near the $4K threshold, making the coming days critical for price direction.
