Ethereum Poised for $4,000 Breakout Amid Rising On-Chain Activity

Ethereum has crossed the $3,000 mark in early 2026 but struggles against resistance at $3,400. Currently, it is consolidating below this level.

Technical analyst Ali Martinez indicates potential for Ethereum to rally towards all-time highs if buying momentum continues.
On-chain data shows a doubling of daily active addresses on Ethereum's network, exceeding 800,000 in two weeks.
Ethereum ETFs have accumulated approximately 158,545 ETH, valued at around $520 million since December 29, supporting a positive outlook.
Key support levels are identified between $2,772 and $3,109, potentially preventing a drop below these points.
If support holds and buying pressure remains, Ethereum could break past $3,400 and rally towards $4,000, a 24.33% increase from current levels.

Ethereum

Future Outlook

Analysts like BitBull see potential for an inverse head and shoulders pattern, suggesting a target of $5,000, a 55.48% rise.
Despite this, Ethereum prices fell by 3% over 24 hours, indicating lack of immediate bullish momentum.
Ted Pillows notes that post-drop, the market's maximum pain point leans upward, highlighting potential price movement.
Approximately $3.4 billion in short positions could be impacted if Ethereum breaches $3,400 soon.

Ethereum