Can Ethereum Reach the $3900 Resistance? Here's the Explanation

Ethereum (ETH) has captured the spotlight once again, outperforming Bitcoin and many altcoins with a surge that’s brought it close to the $3,800 mark.

Up more than 25% over the past seven days and 60% in the past month, Ethereum’s bullish run is fueled by a combination of regulatory breakthroughs, institutional investment, and shifting market dynamics signaling the arrival of another altcoin season.

Read Also: Why ETH is Going Up Today? Discover Ethereum Price Forecast

Ethereum Climbs Amid Regulatory Wins

Ethereum’s recent price surge is closely tied to significant regulatory milestones. Last week, President Donald Trump signed the Genius Act into law, a legislative move aimed at establishing clearer regulatory frameworks for stablecoins.

This development is especially bullish for Ethereum, as many of the top stablecoins like USDC and DAI are built on its network.

As stablecoin adoption grows, so too does demand for Ethereum’s native token, Ether (ETH), which powers network transactions.

Furthermore, the House of Representatives recently passed the Clarity Act, a bill designed to limit the Securities and Exchange Commission's (SEC) authority over cryptocurrencies.

While it still needs Senate approval, the Clarity Act signals growing political support for digital assets and could open the door to broader adoption and investment in Ethereum.

Ethereum’s Technical Setup: Key Resistance and Support Levels

On-chain analysis from Glassnode reveals that Ethereum is currently testing a significant resistance range between $3,877 and $3,987.

This zone has been historically difficult to break and could trigger selling pressure. However, a strong support level around $3,434 may offer a safety net for buyers should a pullback occur.

The Relative Strength Index (RSI) remains below the overbought threshold (70), suggesting that Ethereum still has room to rally without facing immediate correction pressures.

If Ethereum breaks through its resistance zone, it could aim for its previous all-time high of $4,800, a psychological and technical target for both retail and institutional investors.

Ethereum Price on July 22nd | Source: Bitrue

However, at the time of writing this article on July 22nd, Ethereum's price had fallen by 2.21%, leaving it currently trading at $3,700. The RSI remains above 58, suggesting a price increase today.

Read Also: How High Ethereum Price Forecast on 2026?

Institutional Demand for Ethereum Skyrockets

Institutional interest in Ethereum is also gaining momentum. Investment firm Bernstein reported a record $727 million inflow into spot Ethereum ETFs, reflecting growing trust in ETH as a long-term asset.

BlackRock and other major players are increasingly promoting ETH in portfolios, outpacing even Bitcoin in net purchases over recent weeks.

Adding to the bullish sentiment is a major capital move from StablecoinX, which raised $360 million for acquiring Ethena and building a crypto treasury strategy centered around Ethereum.

Such moves mirror earlier Bitcoin strategies by companies like MicroStrategy and signal a broader institutional pivot toward ETH.

Notably, Coinbase Global (COIN), the largest U.S.-based crypto exchange, holds over $440 million in Ethereum.

When it first announced its Ethereum holdings in 2021, Coinbase predicted a wave of corporate treasuries would follow suit, and that prediction is now unfolding.

Altcoin Season Accelerates as Bitcoin Dominance Drops

Source: TradingView

Ethereum's dominance is rising just as Bitcoin’s grip on the market weakens. Bitcoin's share of total crypto market capitalization dropped to 61%, the lowest since March.

Historically, such declines in BTC dominance have preceded strong altcoin rallies, especially for Ethereum.

The Altcoin Season Index, which recently climbed to 41, further validates this trend. Ethereum has already surged 21% this past week, while Bitcoin barely notched a 0.6% gain.

This suggests investors are shifting their capital into higher-risk, higher-reward altcoins, with Ethereum leading the charge.

Read Also: GameSquare Launches ETH Treasury Program with $5 Million Ethereum Purchase

Ethereum’s Broader Ecosystem Gaining Steam

Beyond price movement, Ethereum’s ecosystem continues to shine:

1. NFTs on Ethereum are thriving, with CryptoPunks leading a 15.6% increase in NFT floor prices.

2. New entrants like Fat Penguin NFTs are gaining traction, buoyed by whale investor activity.

3. Michael Saylor, a long-time Bitcoin advocate, recently warned of BTC supply scarcity, but Ethereum's growing utility is quietly attracting both retail and institutional eyes.

Ray Youssef, CEO of crypto marketplace NoOnes, aptly summarized Ethereum’s appeal, "Ethereum’s killer app is tokenization. It lets anyone, be it a factory, artist, or influencer, create their own economy."

That utility is driving companies like BitMine Immersion Technologies and SharpLink Gaming to raise capital and follow the Ethereum path blazed by Coinbase and other pioneers.

What’s Next for Ethereum?

If Ethereum breaks the $3,987 resistance, a run to $4,800 seems increasingly likely. Backed by strong fundamentals, growing use cases, and clear political tailwinds, Ethereum is well-positioned to challenge its all-time highs.

Still, investors should watch for macro market conditions, regulatory developments, and ETF flows, which could either strengthen or slow Ethereum’s ascent.

Read Also: $1.5 Billion Power Play: Ether Machine Launches Bold Institutional ETH Yield Fund

Stay Ahead of the Crypto Curve on Bitrue

Ethereum's story is far from over, and if you're serious about staying informed in this rapidly evolving space, don’t miss out on real-time updates, expert insights, and actionable analysis.

Follow the Bitrue Blog to stay on top of the latest Ethereum trends, market news, and altcoin opportunities.

FAQ

Why is Ethereum rising now?

Ethereum is benefiting from recent U.S. legislation supporting stablecoins, massive ETF inflows, and a shift in investor focus from Bitcoin to altcoins.

What is the Genius Act and how does it affect Ethereum?

The Genius Act establishes legal clarity for stablecoins, many of which operate on the Ethereum network—driving increased demand for ETH.

What resistance levels should Ethereum break for a rally to continue?

ETH faces strong resistance between $3,877–$3,987. Breaking this could pave the way toward $4,800.

Is Ethereum attracting institutional investment?

Yes, institutions are increasingly allocating funds into ETH, with over $727 million in ETF inflows and major firms like BlackRock and Coinbase holding significant positions.

Is now a good time to invest in Ethereum?

While Ethereum shows strong bullish momentum, investors should consider market risks and resistance levels before entering. Staying updated via platforms like the Bitrue blog is recommended.