Ethereum (ETH) has captured significant attention in the crypto market this week as its trading volumes surged to $75 billion, reaching a 2025 swing high of $4,788. 

Despite ETH’s recent pullback, the technical setup and strong market tailwinds suggest that the top altcoin could be poised for a substantial bounce, potentially testing the $5,000 level in the near term. Broker Jennifer Walker at Highmont Group presents an in-depth examination of this topic.

ETH Faces Key Support at $4,100

Following a series of lower closes in five of the last six trading sessions, ETH is now approaching a critical support zone at $4,100. This level previously acted as strong resistance for nearly 18 months, making it a key technical pivot. Whether ETH holds above this area could define the trajectory of its ongoing rally.

The current market retracement appears to be a healthy correction after ETH surged from $1,400 to $4,788, highlighting the importance of monitoring volume trends and support levels for future directional signals. High trading volumes remain a key factor, with recent activity accounting for nearly 10% of ETH’s circulating supply, translating to $45 billion in active trades.

Surge in Trading Volumes Signals Market Interest

Data from CoinMarketCap shows that ETH trading volumes spiked to $75 billion on August 14, coinciding with the swing high of $4,788. This level marks a critical short-term top, as the market paused to consolidate after a strong upward trend. 

Such liquidity spikes often precede momentum shifts, indicating that market participants are actively positioning themselves around major technical levels.

Bullish Tailwinds Support ETH’s Upside

From a fundamental perspective, ETH enjoys several tailwinds that bolster a bullish outlook:

• Passing of the Genius Act: This legislation facilitates the launch of new decentralized applications (dApps) in the U.S., many of which will likely rely on the Ethereum network as their backbone. The adoption of ETH in enterprise and consumer dApps strengthens demand for the token.
  
• Favorable Regulatory Environment: A new SEC leadership favors the creation of ETH-linked investment and trading products, enhancing liquidity and fostering institutional adoption.
  
• ETF Inflows: Data from Farside Investors shows that ETH-linked spot ETFs have crossed $12 billion in assets under management (AUM). Continuous inflows into these products indicate a strong institutional appetite for ETH exposure.
  
• Pectra Upgrade: The recent Pectra upgrade improved the Ethereum Virtual Machine (EVM), increasing scalability and network efficiency. The upgrade also introduced deflationary mechanisms by burning a larger portion of gas fees, which could reduce ETH supply over time and support price appreciation.

These factors, combined with technical support around $4,100, create a compelling case for ETH to resume its uptrend.

Technical Indicators and Daily Chart Analysis

The daily chart highlights that ETH is currently testing former resistance turned support, which aligns with its trend line support. A bearish breakout below this area could trigger a deeper correction, potentially targeting the $4,000 zone.

However, the Relative Strength Index (RSI) has recently stepped off overbought levels, suggesting a short-term cooling period. Despite this, the structural momentum and underlying market tailwinds imply that ETH remains positioned for higher highs, potentially reaching $5,000 in the near term if the support holds.

Hourly Chart Shows Early Buying Pressure

On the 1-hour chart, ETH has not yet fully tested the $4,100 support. Instead, the token recently bounced off a previous accumulation zone, where it rallied from $4,300 to $4,800. This level demonstrates short-term buying pressure, which could support a minor rebound before ETH tests larger daily support zones.

While intraday gains are possible, long-term trend analysis emphasizes that a higher time frame supports carrying more significance. Traders should monitor volume spikes and momentum indicators closely, as a breach of the daily support could lead to further downside, whereas a successful hold may propel ETH toward $5,000.

Conclusion: $5,000 in Sight?

Ethereum’s current price action presents a critical juncture. With major tailwinds, including regulatory support, ETF inflows, and the Pectra network upgrade, ETH has the potential to recover quickly from its $4,100 support.

Technical indicators suggest that if the trend line and horizontal supports hold, the altcoin may soon attempt to challenge $5,000. Traders should remain attentive to volume patterns, RSI levels, and key support zones, as these metrics will be decisive in determining whether ETH can sustain its bullish momentum and extend its rally into new yearly highs.

In short, ETH is at a make-or-break moment, and the combination of strong fundamentals and technical support makes a bounce toward $5K a plausible scenario in the coming weeks.