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Ethereum Price May Face Correction Before Potential Break Above $4,000 Resistance


  • ETH faces strong sell walls near $4,000 limiting immediate upside.

  • Institutional buying via Ether treasuries and spot ETFs has surged recently, signaling confidence.

  • Market analysts suggest a retracement zone between $3,500 and $3,300 before renewed upward momentum.

Ether price resists $4,000 despite strong treasury buying and $1.84B spot ETF inflows; expect a correction before new highs. Stay informed with COINOTAG.

Why Is Ether Price Struggling to Break $4,000 Despite Strong Demand?

Ether’s price momentum is currently restrained by significant sell walls near the $4,000 mark. Despite a 57% gain over the past month, these resistance levels have capped further upside. Independent market analyst Adam highlights that until these sell walls are absorbed or removed, Ether’s price may consolidate or pull back. This technical barrier coincides with strong institutional accumulation, including multiple Ether treasuries and spot ETF inflows exceeding $1.84 billion in the last week alone.

How Have Ether Treasuries and Spot ETFs Influenced Recent Price Action?

Since June, major Ether treasuries like Bitmine Immersion Tech and SharpLink Gaming have acquired large quantities of ETH, totaling over 927,600 tokens. Additionally, spot ETH ETFs now hold net assets surpassing $20.6 billion, reflecting robust institutional interest. However, despite this accumulation, related stocks such as SBET and BMNR have seen recent pullbacks of 36.4% and 14.52%, respectively, following substantial rallies earlier this year. This suggests profit-taking amid volatile market conditions.

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ETH sell walls at $4,000. Source: Adam / X

What Does Technical Analysis Indicate About Ether’s Next Move?

Technical patterns reveal an inverse head-and-shoulders formation targeting $4,300, but cautious trader sentiment limits margin use near resistance. Funding rates remain neutral, indicating hesitancy among risk-tolerant traders to leverage positions around this multi-year resistance zone. Analyst Michael Van de Poppe notes that liquidity on the long side is poised to be taken, implying a likely retracement to the $3,500–$3,300 support zone before a potential breakout above $4,000.

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ETH/USDT 1-day chart. Source: TradingView

What Are Market Experts Saying About Ether’s Price Outlook?

Market experts emphasize the importance of overcoming the $4,000 resistance to confirm a sustained bullish trend. The combination of strong treasury buying and ETF inflows provides a solid foundation, but short-term corrections are expected as traders digest recent gains. This cautious optimism is reflected in the neutral funding rates and the presence of sell walls, which act as temporary barriers to price advances.

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ETH/USDT chart. Source: X / CryptoMichNL

Frequently Asked Questions

What is causing Ether’s price resistance near $4,000?

Strong sell walls around $4,000 are limiting Ether’s price rise despite institutional buying. Traders expect a short-term pullback before a potential breakout.

How do Ether treasuries and ETFs impact the market?

Ether treasuries and spot ETFs increase institutional demand, boosting price support. However, recent stock pullbacks indicate profit-taking amid volatility.

Is a price correction expected for Ether soon?

Yes, analysts predict a retracement to the $3,500–$3,300 zone before Ether attempts to surpass the $4,000 resistance level.


Key Takeaways

  • Strong sell walls near $4,000: Limit immediate Ether price gains despite institutional buying.
  • Robust treasury and ETF inflows: Reflect growing institutional confidence in ETH’s long-term value.
  • Anticipated correction: Traders expect a pullback to $3,500–$3,300 before a potential breakout above $4,000.

Conclusion

Despite significant treasury accumulation and record spot ETF inflows, Ether’s price faces strong resistance near $4,000. Market indicators and expert analysis suggest a short-term correction to the $3,500–$3,300 zone before renewed upward momentum. Investors should monitor these levels closely as Ether approaches critical resistance, signaling potential opportunities ahead.


Key point:

  • Traders expect ETH to retest the $3,500 to $3,300 zone before a break to new year-to-date highs.

Ether (ETH) gained 57% over the past month, but consistent selling near $4,000 is putting a cap on the price upside. Independent market analyst Adam pointed to sell walls in the zone and said that even though “ETH is so back,” its price could lose momentum until these are either filled or pulled.” 

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ETH sell walls at $4,000. Source: Adam / X

Aside from technicals, the bulk of ETH’s price move lined up with the launch of multiple Ether treasuries. Since June, Bitmine Immersion Tech and SharpLink Gaming have acquired 566,800 and 360,800 ETH, respectively, and data from Farside Investors shows Ethereum spot ETF inflows topping $1.84 billion in the last 7 days. The current total net assets for the spot ETH ETFs now exceed $20.6 billion.

Ethereum ETF Weekly Flow

$1,846.5 million pic.twitter.com/gIqDGzGAzX

— Farside Investors (@FarsideUK) July 26, 2025

Despite a dedicated commitment to stockpiling ETH, SharpLink Gaming’s SBET and Bitmine Immersion Tech’s BMNR stock are down 36.4% and 14.52% over the past week, but the decline comes after each stock had a respective 565% and 381% rally over the past three months. 

019852e4 6bc5 76b5 8e16 96b9ae01b2d4
SBET/BNMR price. Source: TradingView

From a technical standpoint, ETH’s higher time frame market structure shows a confirmed inverse-head-and-shoulders pattern with a target at $4,300, but beyond the steady purchasing by institutional investors (ETFs and ETH treasuries), funding rates remain neutral, suggesting that risk-loving traders are hesitant to boost their use of margin around a multi-year resistance level.

019852f6 ab9c 70d6 a02b 49095f5484c5
ETH/USDT 1-day chart. Source: TradingView

Some traders, including independent market analyst Michael Van de Poppe, believe that “liquidity on the longside [is] ready to be taken,” suggesting a brief retrace to the $3,500 to $3,300 zone will occur before a rally through the $4,000 resistance. 

019852ee fade 798c 8ca8 2ba7ccd9b3cb
ETH/USDT chart. Source: X / CryptoMichNL

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