Ethereum Poised For $4,000 Breakout? Expert Pinpoints On-Chain Triggers For Potential Rally

As Ethereum (ETH) kicks off the year with a recove

Ethereum Poised For ,000 Breakout? Expert Pinpoints On-Chain Triggers For Potential Rally

Ethereum Poised For $4,000 Breakout? Expert Pinpoints On-Chain Triggers For Potential Rally

As Ethereum (ETH) kicks off the year with a recovery past the critical $3,000 threshold amid a broader cryptocurrency market rally in early 2026, it continues to struggle against a key resistance level at $3,400. Currently, the second-largest cryptocurrency is entering a consolidation phase below this significant mark.

The daily chart shows ETH’s struggle to surpass the $3,400 resistance. Source: ETHUSDT on TradingView.com
ETH’s liquidity heatmap. Source: TedPillows on X

Historically, large investors and institutions have tended to “hunt” liquidity levels, which helps to reset positioning in the market and evacuate numerous retail investors. 

With approximately $3.4 billion in short positions at risk if Ethereum successfully breaches the $3,400 mark in the days ahead, the possibility of a significant price movement looms. 

Featured image from DALL-E, chart from TradingView.com 

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