Ethereum (ETH) has broken above key resistance levels, reaching $4,489 — its highest price since 2020 — fueled by unprecedented institutional inflows and growing speculation of a Federal Reserve rate cut.
Ethereum’s rally accelerated this week as the price surged past the critical $4,000 resistance zone, climbing over 37% in just one month. The breakout comes after spot Ether ETFs recorded over $1 billion in daily inflows on Monday, surpassing Bitcoin ETFs in trading volume for the second consecutive week.
On the daily chart, ETH convincingly cleared the $3,500–$3,600 supply zone, then sliced through the $4,000 psychological barrier, leaving minimal overhead resistance until its previous all-time highs. The rally marks the strongest bullish momentum in years, with volume spiking to levels last seen during the 2021 bull run.
Market sentiment received a further boost after Tuesday’s CPI report signaled that inflation, while still elevated, may be cooling enough to warrant a September Federal Reserve rate cut. Lower interest rates are historically favorable for risk assets like cryptocurrencies, and analysts believe Ethereum stands to benefit the most.
Key Levels to Watch
If bullish momentum continues, the next major resistance lies near $4,800–$4,850, a zone corresponding to Ethereum’s historic highs. On the downside, analysts are eyeing $4,000 as a crucial support level, with further downside protection around $3,500.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.