On Oct. 27, Ethereum broke past $4,200 having surged by 7.12%. The token has been on an upward trend following institutional accumulation and geopolitical momentum.
- Ethereum (ETH) has reclaimed bullish momentum, trading around $4,200 after breaking above the $4,000 psychological level, supported by strong technicals.
- Institutional accumulation and market optimism fueled by the easing of U.S.–China trade tensions has reignited risk appetite across global markets, lifting crypto prices and helping Ethereum post a 5.6% daily gain as part of a wider rally.
Ethereum has been trading around $4,220 showing renewed bullish momentum after reclaiming the $4,000 psychological level. However, it has shown a slight retraction to the $4,200 mark following its rise. The token has been soaring above its 30-day moving average, which stands at around $4,076 acting as dynamic support.
This indicates that short-term buyers are hoarding control over the token, with momentum favoring continued upside as long as ETH (ETH) holds above the $4,050 to $4,100 zone. The Relative Strength Index is currently hovering around 78, indicating overbought conditions.
Historically, RSI readings above 70 suggest that a short-term correction or consolidation could follow as traders take profit. Though, as long as RSI maintains its higher range and avoids a sharp divergence, the trend remains structurally bullish.
If buying pressure continues, ETH could even aim to reach the $4,250 to $4,300 zone as the next resistance area, followed by the previous swing high near $4,450. On the downside, immediate support sits near the $4,000 handle, with stronger support around $3,850 if momentum fades.
ETH’s breakout above $4,000, combined with sustained on-chain accumulation and positive market sentiment could suggest potential further upside, though short-term traders should keep an eye out for possible cooling off periods.
Here are some of the reasons why Ethereum has been pumping:
SharpLink accumulation raises ETH
As previously reported by crypto.news, the Ethereum treasury SharpLink Gaming recently increased its holdings. The firm recently bought 19,271 ETH or equal to around $78.3 million. The purchase boosted its total holdings to around 859,853 ETH ($3.1 billion).
At the moment, SharpLink Gaming stands as the second largest corporate holder of Ethereum, falling behind only to to Tom Lee’s BitMine Immersion. There are about 14 entities in the world that hold Ethereum, accumulating a total of 4.6 million ETH which represents 3.86% of the entire global supply.
Shortly after the news broke, the price of Ethereum catapulted way above $4,200, reaching as high as $4,246. The token has been on a rise since the beginning of the week, but today’s increase has brought it past the previous threshold.
U.S and China tension fizzles out
Investor momentum has reignited following the easing of U.S and China trade tensions, which is lifting risk appetite and benefitting crypto assets broadly. Weekend reports have indicated that tensions have been cooling off after Treasury Secretary Scott Bessent said the U.S. government was holding off on applying 100% tariffs on Chinese imports.
The recent development sparked a wave of risk-on sentiment across global markets. Japan’s Nikkei 225 surpassed the 50,000 mark for the first time, while Korea’s KOSPI climbed above 4,000, and U.S. stock futures rose between 0.3% and 0.9%.
The trend is reflected in the crypto side of the market. The overall crypto market cap has risen by 3% in the past day, inching even closer to the $4 trillion mark. Bitcoin (BTC) has gone up by 3.1% in the past day, while Ethereum has showcased a bigger leap of 5.6%. Smaller altcoins like Pi Network (PI), Zcash (ZEC) and PayAI Network have seen gains ranging from 20% to more than 45%.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
