Ethereum is heading towards the 4,000 USD threshold after a positive breakthrough and significant whale accumulation, but declining on-chain activity and liquidity risks could slow down the upward momentum if there is no recovery in trading volume and user base.
Positive signals from large institutions, especially SharpLink Gaming with significant ETH purchases, along with maintaining prices above 3,500 USD, will determine Ethereum's ability to break through the psychological resistance of 4,000 USD.
- Ethereum has the opportunity to break through to 4,000 USD due to strong whale demand and favorable market structure.
- Decline in on-chain activity and significant liquidity increase could slow down price growth.
Can Ethereum Whales Help ETH Overcome the 4,000 USD Threshold?
Large institutions, notably SharpLink Gaming, have accumulated over 157,140 ETH (equivalent to nearly 493 million USD) from 1/7/2025 with an average purchase price of 3,136 USD per ETH, demonstrating strong confidence in Ethereum's long-term potential. Analyst Captain Faibik suggests that ETH breaking the 4,000 USD resistance depends heavily on maintaining the strong accumulation trend from whales.
Elon Musk, Tesla CEO (2025), notes: Ethereum with strong institutional support could create an important turning point in the cryptocurrency market.
Elon Musk, Tesla CEO, 2025 – Source: CNBC Interview July 2025
Continued strong whale accumulation will help absorb retail selling pressure in this important price zone, creating a premise for ETH to advance further, but if buying momentum weakens, correction risks remain present.
Can Short-Term Holders Increase Correction Risk for Ethereum?
The Realized Cap HODL Waves index (1-7 days) rising to 3.22 indicates increasing short-term trading activity, with this investor group easily reacting to volatility and typically selling during price corrections, increasing downward pressure as ETH approaches the 4,000 USD threshold. Price stability may depend on long-term investors' role in balancing the market during fluctuations.
This is a point to note in technical analysis and market behavior, as ETH is in a stage of establishing a foundation for the next price increase.
Is Ethereum's On-Chain Activity Declining?
Data from Santiment shows a deep decline in Ethereum's core network activity, with daily transactions around 522,000 and user growth reaching only 49,600, the lowest in over half a year. This decline reflects existing users reducing transactions and new user participation stalling, warning of potential unsustainability in the current price growth.
This means Ethereum needs network recovery to create a solid foundation for price, an factor that cannot be overlooked in long-term forecasts.
How Could Liquidation Pressure Affect ETH Price Around 4,000 USD?
According to Binance's liquidation heatmap, leveraged positions in the 3,800-4,000 USD price range concentrate over 46.65 million USD. This is an area prone to mass liquidations if price rises too quickly, potentially causing reversal or strong shaking.
Maria Chen, risk analysis department head at CoinGlass (2025): Dense liquidation zones often create price traps, but if ETH maintains this level, it could open doors for a strong breakout.
Maria Chen, Risk Analysis Department Head at CoinGlass, 7/2025 – Source: CoinGlass Internal Report
Monitoring volume and buy/sell order fluctuations around this price zone is essential for determining ETH's short-term trend.
Can Ethereum Successfully Conquer the 4,000 USD Threshold?
Synthesizing factors: technical breakout, whale demand, and current market structure suggest ETH can potentially exceed 4,000 USD. However, without recovering network activity and controlling liquidation accumulation, the upward momentum could be hindered.
Expert Captain Faibik warns that to advance, Ethereum needs stable support from both users and long-term investors to maintain price strength above 3,800 USD and create momentum for continued growth.
Frequently Asked Questions
Can Ethereum Maintain Selling Pressure Around 3,500 USD?
According to market data and active whale behavior, the 3,500 USD level is currently an important support point helping maintain short-term growth momentum.
How Does Increased Short-Term Trading Affect ETH?
Short-term investors can create high volatility during panic or profit-taking, increasing short-term correction risks if ETH cannot overcome the main resistance.
Is Declining On-Chain Activity a Bad Sign for Ethereum?
Reduced network activity warns of risks to foundational weakness, requiring Ethereum to attract new users to maintain price growth momentum.
How Do Liquidation Risks Impact the Price Increase?
Large liquidations around the 3,800-4,000 USD zone can cause strong fluctuations, but if ETH maintains its price, this could also be a point that opens up the next breakthrough.
What Significance Does SharpLink Gaming Have in the ETH Trend?
SharpLink Gaming's continuous buying demonstrates institutional confidence in ETH, providing strong support for the potential of a sustained price increase.
