Ethereum Breaks $4,600 Barrier: Can Bulls Finally Push Toward $5,000?

Ethereum Price Surges Past $4,600 as Bulls Eye Breakout: What’s Driving the Momentum?

Ethereum, the world’s second-largest cryptocurrency by market capitalization, is once again capturing the spotlight. The digital asset surged to $4,604, gaining 2.3% in the past 24 hours and nearly 15% over the last week, signaling renewed confidence in the broader crypto market.

At the time of writing, Ethereum commands a market cap of approximately $556 billion, with daily trading volumes surpassing $35 billion. This rebound places Ethereum firmly among the top-performing major assets, outpacing Bitcoin’s weekly performance and drawing attention from institutional and retail investors alike.

But while optimism is growing, market analysts warn that Ethereum now faces a crucial test — a technical resistance zone that could determine whether the current rally continues or stalls.

A Technical Crossroads: Testing the $4,650 Resistance Zone

According to on-chain and chart analysts, Ethereum is now pressing against a key descending trendline that has repeatedly capped its upward momentum for nearly two months. Market strategist Ali Martinez noted that ETH has tested the same resistance line four times without a successful breakout, creating a scenario where bulls must either push through or risk another correction.

Historically, every time Ethereum approached this level — around $4,650 — the market faced a sharp rejection, often resulting in price drops of 5–10% in the following days. This pattern has traders closely watching whether the fifth attempt will finally break the cycle.

Source: X

“The next 48 to 72 hours could define the short-term trend for Ethereum,” said Martinez. “If bulls can close above $4,700 on strong volume, it would invalidate the descending channel and potentially open the path toward the $5,000 region.”

Liquidations Point to Easing Bearish Pressure

Recent market data supports the bullish narrative. Over the last 24 hours, more than $53 million in leveraged positions were liquidated across major exchanges. Notably, short sellers accounted for roughly $37 million of those losses, suggesting that bearish bets are being squeezed out of the market.

When large-scale short liquidations occur, it often sparks a temporary wave of buying pressure as automated systems close positions. This, combined with renewed investor sentiment and steady inflows into Ethereum-based products, has strengthened ETH’s short-term outlook.

Data from CoinGlass shows a sharp decline in the total number of open short contracts since Friday, signaling that traders are becoming increasingly confident in a potential breakout.

Chart Structure and Indicators Support a Bullish Bias

From a technical standpoint, Ethereum has been forming higher lows since mid-September, an early signal of an uptrend resumption. The Relative Strength Index (RSI) currently hovers near 60, indicating moderate momentum without signs of overextension — a healthy position for sustained gains.

Moving averages are also showing encouraging signs. The 50-day EMA recently crossed above the 200-day EMA in what traders often call a “golden cross,” a bullish indicator that historically precedes longer-term rallies.

Source: TradingView

However, analysts caution that failing to hold above $4,500 could invalidate the bullish structure, potentially leading to a short-term retracement back toward $4,200, where Ethereum has established strong support.

“The technical setup is positive, but it’s also delicate,” said crypto market analyst Fiona Zhao of Blockchain Intelligence Group. “A false breakout could trap late buyers and trigger another wave of liquidations. Patience is key.”

Fusaka Upgrade: Fueling Fundamental Optimism

Beyond the charts, Ethereum’s next major protocol upgrade, Fusaka, scheduled for December 2025, is playing a major role in driving optimism. The update aims to enhance transaction throughput, reduce gas fees, and expand staking capabilities, addressing some of the network’s most persistent pain points.

Fusaka is expected to introduce refined execution layers that streamline validator efficiency, while also paving the way for new decentralized finance (DeFi) functionalities. The Ethereum Foundation has already confirmed that several core developers have completed the initial testing phase on public testnets, with early feedback described as “stable and resource-efficient.”

The upgrade follows the successful completion of the Dencun update earlier this year, which integrated proto-danksharding — a scaling solution that laid the groundwork for cheaper Layer 2 transactions. As Ethereum transitions toward this next phase, developers anticipate a noticeable drop in on-chain congestion and enhanced staking rewards, both of which could further strengthen ETH’s long-term value proposition.

Rising Staking Participation Reflects Growing Confidence

One of the most notable trends bolstering Ethereum’s market resilience is the steady rise in staking participation. As of early October, more than 31 million ETH — roughly 26% of total supply — is now locked in staking contracts, a record high since the Merge transition to Proof-of-Stake.

This surge demonstrates growing trust in Ethereum’s long-term sustainability, as participants choose to lock their tokens in return for consistent yields instead of speculative trading.

According to data from StakingRewards, average validator returns currently range between 4.5% and 5.2%, depending on network activity. With Fusaka expected to improve efficiency and potentially increase yields, institutional staking could become a dominant narrative heading into 2026.

“Staking has evolved from an optional feature to a cornerstone of Ethereum’s ecosystem,” explained blockchain researcher Lucas Harmon. “It’s helping to create a more stable market environment by reducing circulating supply and encouraging long-term commitment.”

Market Sentiment Turns Positive Amid Broader Crypto Recovery

Ethereum’s resurgence comes at a time when the broader crypto market is showing renewed strength. Bitcoin has held above $68,000, while altcoins such as Solana, Avalanche, and Chainlink have also posted double-digit weekly gains.

This synchronized recovery has reignited optimism across the digital asset sector, with many investors speculating that Ethereum could lead the next leg of the bull cycle.

Institutional inflows into Ethereum-focused funds have also increased. Data from CoinShares shows more than $150 million in new weekly inflows into Ethereum investment products, marking the strongest accumulation since early 2022.

At the same time, trading activity on decentralized exchanges (DEXs) built on Ethereum, including Uniswap and Curve, has spiked by over 20% week-on-week, suggesting that users are re-engaging with the DeFi ecosystem amid rising confidence in the network’s stability and upcoming upgrades.

What to Watch Next

The coming week could prove pivotal for Ethereum’s short-term trajectory. Traders are closely watching whether ETH can secure a daily close above $4,700, which would confirm a breakout from the descending channel and likely trigger momentum toward $4,900–$5,000, levels last seen during the 2021 bull run.

Conversely, failure to maintain strength above the resistance line could lead to another correction, with potential retests of $4,350 and $4,200 serving as key support zones.

For long-term investors, however, the underlying fundamentals remain sound. With the Fusaka upgrade approaching, staking rates climbing, and ecosystem activity rebounding, Ethereum appears well-positioned to maintain its dominance as the foundation of the decentralized web.

As always, analysts caution that volatility remains a hallmark of the crypto market. But for now, Ethereum’s blend of technical resilience and growing developer momentum suggests that the bulls are firmly in control — at least until the next resistance test.

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