Ethereum Escapes $4,000 Barrier After Seven Rejections, Eyes Fresh Highs Above $7,000

Ethereum cleared $4,000 after seven rejections, reaching $4,537.76 with a 29.77% surge in its breakout candle.

Exchange balances dropped to a nine year low of 14.88M ETH, with $2B withdrawn in just one week.

Analysts see potential upside toward $7,000–$11,000 as $4,000 flips from resistance into support with growing demand.

Ethereum broke above the $4,000 level after repeated rejections that spanned multiple years of trading. The digital asset had tested this resistance on seven separate occasions, each time either facing steep declines or temporary consolidations

This long standing top has now been surpassed with momentum, carrying Ethereum as high as $4,537.76. The move marks one of the most decisive breakouts in recent years and introduces a pivotal shift in Ethereum’s market structure.

Repeated Tests Strengthen the Breakout Narrative

The $4,000 price zone acted as a top across several cycles. Earlier rejections, including one labeled as point two on the chart, led to sharp declines. Each failure added pressure to the level, solidifying its importance as a resistance barrier

ETH/USDT 2-week price chart, Source: Merlijn The Trader on X

However, Ethereum’s seventh attempt saw a decisive breakout candle with a 29.77% gain, showing significant buyer strength. This change has led to a technical realignment

Historical resistance often turns into support after a breakout, and $4,000 may now serve this role. Analysts highlight that a bullish retest above $4,000–$4,350 could establish a stronger base for continued upside.

Historical Patterns Suggest Higher Levels

The breakout aligns with cyclical patterns observed in earlier Ethereum rallies. After breaking multi-year barriers, Ethereum has historically entered phases of accelerated growth. Current projections indicate potential movement toward $7,000–$11,000 if momentum continues.

The chart also shows a projected consolidation path marked in blue, suggesting Ethereum could stabilize above the breakout zone before advancing further. This consolidation phase would serve as a buffer, allowing markets to absorb gains while preparing for another leg higher.

Exchange Balances Show Supply Decline

Further support for the breakout comes from blockchain data. According to CryptosRus, Ethereum balances on exchanges have dropped to a nine-year low of 14.88 million ETH. More than 470,000 ETH, valued at nearly $2 billion, left exchanges in the past week.

ETH Balance on Exchanges chart, Source: CryptosRus

This decline is a trend that began in 2020 when balances were at an all-time high of nearly 32 million ETH. Since then, balances have continually contracted as Ethereum price surged from under $200 to over $4,500. Reduced supply on exchanges typically means withdrawals to staking, self custody, or DeFi, lowering instant selling pressure.

This structural change shows the difference from earlier cycles. Exchange supply and price trends now move inversely, with accumulation patterns coinciding with sustained rallies. If this persists, the breakout above $4,000 may gain further strength from tightening supply.

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