Ethereum Price Holds $4K Support as Bull Flag Targets $8K Breakout

Ethereum price remains above the $4,000 level following a rebound after hitting support levels. Analysts highlighted the emergence of a bull flag formation that could propel a significant breakout if confirmed. Nonetheless, the macro-driven volatility in the week is something to keep an eye on.

Ethereum Price Retains Bullish Flag Setup

Analyst Don pointed out that Ethereum’s long-term structure is still following a bull flag continuation pattern. His chart displayed the ETH price breaking the trendline before setting a parallel flag, reflecting consolidation within an uptrend.

The accumulation resembles the one observed before strong rallies. According to Don, the pattern is “still in motion,” which means there could be another upward movement of ETH in the future. The Ethereum price is expected to head towards $8,000 in the next cycle, based on positive breakout levels.

Moreover, the lower border of the flag still aligns with the $3,750-$3,800 support area. As long as this zone is sustained, the overall bullish structure will also be intact. A breakout above $4,250 would confirm a continuation breakout and the flag pattern.

Support Range Between $3,900-$3,950 Holds Firm

Analyst Ted observed that Ethereum saw a sharp correction recently but recovered swiftly within the $3,900-$3,950 zone. This level is now the critical short-term base that may be the foundation for a renewed uptrend.

He noted that the recent sell-off was the result of investor de-risking ahead of the Federal Reserve’s FOMC meeting. Importantly, an optimistic message by Chair Jerome Powell may restore confidence in the risk assets, including Ethereum. Clearly, there are strong resistance levels of around $4,250 and $4,450, as shown in Ted’s chart.

A break above these levels might push ETH to another rally toward $4,800, while failure to hold $3,900 might lead to a retest of $3,800 for a short time. For now, Ethereum price stability above $4,000 remains the most critical signal for bulls to maintain their confidence.

Upside Target Extends Beyond $8,000

Analyst BitBull stated that Ethereum’s momentum remains strong above $4,000, backed by buyers defending the $ 3,800-$4,000 range. He said that so long as this area remains in place, there is “no reason to be bearish” on Ethereum.

His projection suggests a potential leg higher to $8,000 during this market cycle, which aligns with Don’s flag target. This zone represents both psychological and technical resistance, forming the next significant test for long-term investors.

The analyst further pointed out that Ethereum price is still relatively strong compared to other major assets. With institutions’ ongoing requirements and the ecosystem growth in decentralized finance (DeFi), this next upward phase may be supported. However, traders still must watch out for volume confirmation and funding rates before confirming the next breakout move.

Whale Accumulation Highlights Confidence in Rebound

Meanwhile, on-chain data shared by Lookonchain revealed significant buying activity from a single Ethereum whale wallet. The address is believed to have purchased high volumes of ETH at the lowest points of the cycle and sold during major rallies, earning almost $29 million in profit.

Arkham Intelligence data showed that this investor has over 8,000 ETH in previous dips, buying ETH at around $2,400 and $1,800. Such strategic actions demonstrate a belief in Ethereum’s long-term potential and provide insight into the trend patterns of smart money accumulation.

The whale recently dumped to Kraken to indicate partial profit-taking, but most of the holdings are still intact. This accumulation behavior occurs along the direction of market bottoms and is capable of reinforcing long-term price floors. For now, long-standing demand from big holders still underpins Ethereum’s market make-up despite short-term volatility.