$ETH price headed for $4K showdown: Is this time different?

Ether (ETH) is showing renewed strength, with bullish fundamentals and technicals aligning for a potential breakout above the critical $4,000 level.

Key Takeaways: 

• ETF inflows & institutional demand could fuel the push past $4,000

• Growing network activity and rising TVL confirm strong utility demand

• Bull flag breakout suggests a $5,000 target if resistance breaks

After three failed attempts since February 2024, ETH now faces its $4,000 test with stronger tailwinds—including record ETF interest and improving on-chain metrics—hinting at an imminent breakout.

ETH/USD daily chart. Source: Cointelegraph

“With $4,000 now within arm’s reach, the big question is: will Ethereum blast through or break down?” said popular Defipeniel analyst in a July 22 post on X.

According to the analyst, reducing ETH supply on exchanges, increasing staked ETH post-Shanghai upgrade and high ETF demand provide a “cocktail of bullish energy” required to push ETH past $4,000.

Big ETF inflows and treasury demand

Institutional interest in ETH has risen considerably in recent weeks, driven by record-breaking ETF inflows and corporate treasury adoption. 

US-based spot Ethereum ETFs have seen unprecedented demand, with single-day inflows reaching a record $727 million on July 16 and cumulative net inflows exceeding $9.33 billion since their July 2024 launch. 

These investment products continue to show strength, drawing $452.72 million in net inflows on Friday and extending their inflow streak to 16 consecutive trading days, according to data from SoSoValue.

Ethereum’s network activity shows strength

Ethereum’s network fundamentals are near record highs, with daily average transactions climbing to 1.62 million on Friday from 932,000 over the past three months, representing a 73% increase, as per data from Nansen. Daily active addresses rose to a 12-month high of 670,000 on Saturday. 

Ethereum daily transactions and active addresses count. Source: Nansen