Ethereum Price News: Weekly chart shows ETH is nearing $5,000

Ethereum (ETH) has broken through the psychological barrier of $4000 after four attempts over 19 months. The Pectra upgrade has significantly improved EVM network performance, driving ETH up 200% from this year's low of $1400 to the current price of $4200. The Spot ETF has attracted $400 million in a single day, with short positions being squeezed, accelerating the break of previous highs. The technical aspect has formed higher highs, opening an upward channel, with a target of $5000 supported by a potential rise of 17%. A pullback to $3750 could be an excellent buy the dip opportunity.

Historic breakthrough! ETH breaks through 4000 USD after four attempts

The Ethereum bulls have endured four challenges over 19 months, ultimately pushing the ETH price to the key level of $4000. This breakthrough is attributed to the Pectra upgrade, which has deeply optimized the Ethereum Virtual Machine (EVM) framework—this technological upgrade significantly enhances network scalability, operational efficiency, and ecological prospects, laying the foundation for the rise.

Data shows that ETH has strongly rebounded from its low point of $1400 in 2025 to the current price of $4200, with bottom holders realizing a profit of 200%. In the past 30 days, it has surged 45%, not only reversing a nearly 50% decline earlier in the year but also achieving a 25% positive annual return.

Spot ETF attracts 400 million in a single day, short positions squeeze pushes past previous highs

Ethereum Spot ETF capital inflows have become a core catalyst. Last Thursday and Friday, a consecutive two-day capital frenzy offset the outflow at the beginning of the week, resulting in a net inflow of $250 million for the week. Notably, last Friday alone saw over $400 million in capital absorption, driving the total assets under management (AUM) of all ETFs to $19.7 billion, with an annual growth rate of 83.3%.

On-chain data reveals key drivers: over $200 million in ETH short positions were liquidated last Friday, marking the second-largest single-day liquidation in nearly six months. Historical experience shows that short squeezes are often precursors to explosive rises — after a similar liquidation on May 5th this year, ETH saw an increase of over 100% within 100 days.

The technical perspective opens a $5000 channel, a good opportunity to buy on the dip

Technical analysis confirms a strong bullish pattern:

• Trendline support validation effective: ETH recently made a precise retracement to the trendline before a violent rebound, strongly breaking through the historical resistance zone of $4100 (this position has previously triggered sell-offs and sharp declines).
• Higher Highs Established: The daily chart forms a clear ascending staircase structure, momentum indicators continue to rise, and the RSI breaks above the 14-day moving average, signaling a buy.
• $5000 Target Path: Currently, there is a potential rise of 17% to the $5000 level. If it tests the previous resistance level of $4100 and confirms support, the upward momentum will continue.

Buy the dip opportunity alert: If ETH retraces to $3750 (Fibonacci 38.2% retracement level), there will be a potential swing profit space of up to 33%, making it an excellent entry point for long positions.

Conclusion: Three Driving Forces for the New Bull Market of Ether

The Ethereum breakout market is driven by three major engines:

1. Technical Upgrades Empowering: Pectra upgrades address Gas fee and scalability pain points, enhancing ecological competitiveness.
2. Institutional Funds Entering the Market: Continuous net inflows into Spot ETFs establish a solid buying foundation.
3. Technical Breakthrough Signal: The monthly level breaks through a 19-month-long oscillating box, accelerating the trend formation of short positions liquidation. Traders should focus on: Ethereum Spot ETF approval progress, Pectra upgrade implementation effects, and 3750 USD key support level, as a pullback presents a good opportunity to position.