Ethereum Rally Surges 40% as Bulls Eye $4,000 Breakout

Ethereum (ETH) continues its powerful uptrend, showing no signs of slowing after breaking out of a prolonged consolidation phase in early July. The second-largest cryptocurrency by market capitalization has surged over 40% in recent weeks, currently trading near $3,888.

The breakout was decisive, with ETH pushing above the critical $2,900 resistance on strong volume. That level, along with the 50-day EMA, now forms a solid support zone. Reclaiming the 200-day EMA and surpassing the $3,300–$3,500 range confirmed a major trend reversal, drawing aggressive buyers and accelerating momentum.

Market structure remains bullish, with each pullback brief and shallow, signaling persistent demand. The Relative Strength Index (RSI) has climbed to 82, entering overbought territory, but historical patterns suggest Ethereum can remain extended during strong rallies. Traders are closely watching the $4,000 psychological barrier, which could ignite FOMO-driven buying and propel ETH toward $4,400 — the previous high from late 2021.

Key downside support lies in the $3,300–$3,500 range, aligning with critical moving averages. Unless disrupted by a major macroeconomic catalyst, Ethereum’s current trajectory suggests continued upside potential. With bullish sentiment, high trading volume, and strong technical support, ETH remains positioned as one of the most attractive assets in the cryptocurrency market.