Can Ethereum Reach $4K? Analysts Debate Buying Momentum vs. Correction Risk

Ethereum Faces Resistance Near $3,700 as Analysts Warn of Cooling Momentum

Ethereum’s recent surge toward the $4,000 mark has lost steam, with the token falling over 3% to $3,696 on Monday as short-term technical pressures weighed on price action. While institutional accumulation remains strong, several analysts now caution that Ether’s rally may be approaching a consolidation phase.

The drop follows a two-week run of gains that saw ETH steadily outperform Bitcoin. However, that trend may be stalling. Analysts from crypto tracking platform Front Runners pointed out that ETH has outpaced BTC for 14 consecutive days, calling the move “unsustainable without a cool-off.” The firm also flagged an overheated Relative Strength Index (RSI), suggesting a possible euphoric sentiment shift.

Technical weakness was further highlighted by popular market analysts Michaël van de Poppe and Andrew Crypto. Both warned of a potential correction, with ETH recently sliding to as low as $3,650. “The trend is strong, but the market needs a breather,” Andrew Crypto noted, pointing to ETH’s rejection at key resistance levels.

Still, bullish voices remain confident in Ethereum’s trajectory. “ETH to $4,000 is programmed,” said Crypto Rand, who maintains a long-term bullish view despite the recent pause. On-chain activity supports that optimism, with whale purchases reportedly hitting new highs.

Data from CryptoQuant, as shared by analyst Crypto Rover, shows large ETH accumulations continue. Adding to the bullish case, SharpLink Gaming (SBET), one of the top ETH-holding public companies, disclosed a major purchase of 79,949 ETH last week, the most in any single week since it adopted its crypto treasury strategy. The firm now holds 360,807 ETH, with $96 million in additional capital earmarked for further acquisitions.

While ETH has shown resilience despite macroeconomic uncertainties, the current pullback suggests that any move higher may require market consolidation. “A healthy correction often precedes the next big breakout,” said Andrew Crypto.

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

Technical Snapshot: ETH/USD

24-Hour Movement: ETH fell 6.11% from $3,851.59 to $3,623.60 between July 21 (15:00 UTC) and July 22 (14:00 UTC), a $228 swing.
Volume Trends: Sell-side volume spiked to 353,275 units in the early hours of July 22, well above the 24-hour average of 265,473.
Resistance Zone: Persistent rejections near the $3,730–$3,740 area limited upward momentum.
Closing Action: ETH ended near daily lows at $3,647.45, with late-session selling indicating continued downward pressure.
Intraday Breakdown: From 13:09 to 14:08 UTC, ETH dropped 1.25% in under an hour, with a notable surge in volume to 24,478 units at 13:32 UTC.
Support Levels: Key price floors at $3,690, $3,670, and $3,650 were decisively broken under high-volume liquidations exceeding 20,000 ETH per minute.
Recovery Attempts: Brief rebounds failed to sustain above resistance, reinforcing short-term bearish sentiment.