Ethereum (ETH) is trading in the $3630-3667 range but has failed four times to break through the psychological $4000 mark. According to analyst @bitmorpho, the market is currently balancing between growth and pullback. Selling pressure has intensified despite strong fundamental signals.
Fundamentals Pectra Upgrade and Institutional Demand
Ethereum’s primary support comes from technical upgrades and institutional inflows. The recent Pectra upgrade increased the staking limit to 2048 ETH and improved network scalability. According to the analyst, this strengthened Ethereum’s position in the DeFi and NFT sectors. At the same time, institutional interest, including from JPMorgan, continues to grow, especially after SEC statements confirmed that staking is not considered a security.
Macro Outlook Inflation and Ethereum as a Hedge
Against the backdrop of a soft monetary policy, Ethereum is viewed as a hedge against fiat currency depreciation. The analyst believes ETH has potential for new capital inflows, given its historically higher returns compared to traditional assets.
Technical Outlook Patterns Signal a Possible Move
On the 4-hour chart, ETH is forming a symmetrical triangle and a bullish flag. The $3667 support level remains strong, while resistance is in the $3800-4020 range. A breakout above $4000 with volume could open the path to $4500 or even $6000, but failure to break through may result in a pullback to $3482.
Market Remains Cautious
The RSI index is around 62, indicating a moderate bullish momentum. The MACD indicator remains in the green zone but shows a narrowing gap between lines. According to @bitmorpho, the trend may be slowing. Trading volumes are steady but not rising significantly.
Risks and Competition Solana and Cardano Factor
Despite the strength of the Ethereum network, there are still risks of volatility and competition from low-fee blockchains like Solana and Cardano. However, network upgrades and the ETH ecosystem still give it the upper hand, the analyst notes.
Short-Term Outlook The $3800 Zone Will Decide
In the near term, ETH’s movement depends on the resistance at $3800. If the price bounces off the $3667 support, it may signal further growth. Otherwise, according to the expert, a pullback remains possible. The market stays in a wait-and-see phase.
At the time of writing, Ethereum is trading at $3842.19, up 6,5% over the past 24 hours.
