Ethereum Technical Analysis on August 4, 2025: Will the Rally Continue?

A technical analysis of Ethereum on August 4, 2025, diving into support, resistance, and indicators to forecast market trends.

Ethereum, the world’s second-largest cryptocurrency, never fails to spark excitement among traders and investors. As of August 4, 2025, Ethereum’s price is hovering around $3,536, consolidating after a notable upward surge. Is this a launching pad for another rally, or are we due for a pullback? Let’s dig into the charts and indicators to uncover where Ethereum might be headed next. Current Market Overview Ethereum is currently trading within a defined range, with support at $3,400 and resistance at $3,800. This consolidation follows a recent high near $4,000. The daily chart shows Ethereum moving within a mid-term ascending channel, though recent slowdowns in momentum have made traders more cautious. Trading volume over the past 24 hours stands at roughly $20.9 billion, reflecting significant market activity. Key Support and Resistance Zones The primary support zone lies between $3,400 and $3,500, with a critical level at $3,474. A break below this could trigger a deeper correction toward $3,200. On the upside, resistance levels at $3,800 and $4,000 are critical hurdles. A breakout above these could propel Ethereum toward its previous high of $4,890 or beyond. Some believe a clean break above $4,000 could ignite a fresh rally. Indicator Insights The Relative Strength Index (RSI) sits around 58, signaling mild bullish momentum. It’s not yet in overbought territory, leaving room for potential growth. However, a drop below 50 could hint at weakening momentum. The MACD indicator also shows a bullish signal, with the MACD line above the signal line, though the narrowing gap suggests momentum might be waning. Chart Patterns and Scenarios A recent 4-hour chart revealed an ascending triangle pattern, which broke upward near $3,726. Such patterns often signal bullish continuation, but volume confirmation is key. In a bullish scenario, a close above $3,800 could target $4,000. Conversely, a break below $3,400 might lead to a test of $3,200. Some analysts suggest Ethereum could first sweep liquidity around $3,300 before resuming its uptrend. Broader Market Influences Beyond technicals, fundamentals play a role. Recent Ethereum network upgrades, like improved scalability and lower fees, continue to bolster investor confidence. Yet, Ethereum’s correlation with risk assets, such as tech stocks, means macroeconomic shifts—like rising interest rates—could pose challenges. Can Ethereum weather these external pressures? Trading Strategy For short-term traders, buying near the $3,400 support with a stop-loss below $3,350 could be a reasonable setup, targeting $3,800. Long-term traders might wait for a confirmed breakout above $4,000 to reduce risk. In crypto’s volatile landscape, risk management is paramount. Wrapping Up On August 4, 2025, Ethereum stands at a pivotal moment. Key support at $3,400 and resistance at $3,800 and $4,000 will shape its next move. Indicators point to a cautiously bullish outlook, but traders should stay vigilant for trend confirmation. Will Ethereum soar to new heights? With disciplined risk management, traders can navigate this dynamic market with confidence.