Ethereum has just broken above a critical resistance at $3,900, igniting hopes of a new bullish breakout. Backed by growing treasury interest and institutional demand, the ETH price is once again making headlines, but is this rally the beginning of a sustainable bull run or just a short-term spike?
Source: Trading View
Over the last 48 hours, Ethereum surged from $3,720 to nearly $3,960, marking a 6.5% weekly gain. The price action has triggered speculation that Ethereum might soon reclaim the $4,000 level a threshold not seen since late 2021. The recent price movement aligns with growing demand for ETH from treasuries and corporate accounts, a trend that may redefine ETH’s role in Web3 finance.
ETH Price Eyes $4,000 as On-Chain Metrics Support the Rally
The ETH price rally is supported by a combination of rising volume, improving sentiment, and whale accumulation. As seen on the daily chart, ETH convincingly broke out from the $3,900 barrier with a strong bullish candle and increasing volume a classic breakout confirmation.
The next resistance is sitting at $4,050, followed by a psychological wall at $4,200. If bulls maintain momentum above $3,900, these targets could be hit in the short term.
On-chain data supports this optimism. According to data from IntoTheBlock, the number of addresses holding over 10,000 ETH has risen by 8% in the past month. This indicates accumulation from high-net-worth entities and institutional players.
Vitalik Buterin Supports ETH Treasuries — With a Warning
One of the main catalysts behind the current ETH price rally is the rise in Ethereum-based treasury allocations. More companies and DAOs are choosing ETH as a primary reserve asset, pushing demand upward. In a recent interview with Bankless, Ethereum co-founder Vitalik Buterin commented:
“ETH just being an asset that companies can have as part of their treasury is good and valuable… giving people more options is good.”
However, Buterin also offered a word of caution, adding:
“If you woke me up 3 years from now and told me that treasuries led to the downfall of ETH… my guess would be that they turned into an overleveraged game.”
This duality captures the current market tension: Ethereum is gaining legitimacy in corporate finance, but with that comes systemic risk if leverage becomes excessive.
Is Ethereum Entering a New Bull Cycle?
Zooming out, ETH has been in a clear uptrend since bottoming at $2,100 in mid-June. The breakout above $3,900 completes a textbook ascending triangle pattern, which often signals the start of a longer-term uptrend. If the ETH price holds above this level, it may mark the beginning of a macro shift toward a renewed bull cycle.
Historical data supports this theory. In previous market cycles, ETH saw major rallies after reclaiming the $4,000 level. In 2021, for example, a similar breakout led to a 2x move within 60 days. While the market conditions now differ, investor psychology tends to rhyme and momentum may follow if confidence builds.
Still, there are risks. Macro volatility, overreliance on ETH treasuries, and profit-taking at the $4,000 resistance zone could spark short-term corrections. Analysts are watching closely to see whether Ethereum can flip $3,900 into solid support.
Final Thoughts: What This ETH Price Breakout Really Means
The ETH price has entered a pivotal zone. Surging past $3,900 has energized the bulls, but sustainable upside depends on broader market confirmation and treasury stability. As Ethereum takes steps toward becoming a digital reserve asset, the implications go beyond price charts.
With Vitalik Buterin both optimistic and cautious, and with whale activity on the rise, the next few days will be key to confirming whether ETH’s rally is the real start of a bull market or just another false breakout.
