Ethereum Price Prediction: ETH Approaches the $4,000 Psychological Level, What Will Happen Next?

Ethereum price rose to a seven-month high of $3745, with a big pump of 27% over the past week. With over 317,000 ETH flowing out of exchanges, on-chain data shows that investors are heavily engaging in Coin Hoarding. Despite the bullish sentiment, the NUPL indicator shows that the price is approaching the "faith-denial" zone, suggesting that the market may be nearing a short-term saturation point.

Investors are heavily hoarding coins, with over $1.18 billion in ETH spot outflows

Since entering July, investors have withdrawn over 317,000 ETH from the exchange, which is approximately $1.18 billion at current prices. This trend shows strong bullish confidence while also reducing the circulating supply in the market, driving prices further up.

The decrease in the exchange balance indicates that investors are more inclined to hold ETH for the long term, expecting its price to continue to rise, and it may even break through the key psychological barrier of $4000.

The NUPL indicator approaches the "Faith-Denial" zone, and prices may face a short-term pullback

According to on-chain data, Ethereum's NUPL (Net Unrealized Profit/Loss ratio) indicator is approaching the "belief-denial" zone, which is an important signal typically used to measure market sentiment and top risk.

Historically, when this indicator enters this zone, prices often experience a short-term pullback as investors sell for profit. If ETH successfully breaks through $4000, it may trigger a larger scale of profit-taking selling pressure.

The 4000 USD level becomes a key resistance, ETH may face directional choice

As of the time of writing, Ethereum is priced at $3745, which is only 6.8% lower than the resistance level of $4000. This price level has historically acted as a psychological barrier multiple times, and the market is currently at a critical juncture of whether to break out or encounter a pullback.

If the market enters a profit-taking phase, ETH may fall back to $3530, and if it breaks down, it could further drop to $3131, giving back nearly two weeks of gains, confirming the formation of a short-term top.

However, if investors remain bullish and continue Coin Hoarding, ETH is expected to break through $4000 and continue its rising trend, challenging higher intermediate targets.

Conclusion: Ethereum continues to attract the attention of investors, with on-chain data and market sentiment resonating to push prices close to key resistance levels. The future price direction will depend on the alignment of investor confidence and the overall market environment. For crypto users, focusing on ETH breakout or retracement points is a key reference for short-term operations and mid-term positioning.