Ethereum (ETC) co-founder Vitalik Buterin stated that the increased ETH acquisition by public companies was good, as it brings the token to a broader range of investors. Speaking on a podcast at Bankless, Buterin stated, ETH just being an asset that companies can have as part of their treasury is good and valuable… giving people more options is good.” Giving reasons as to why it was good, the cofounder stated that people could access Ethereum without having to hold the token directly. However, if excessive buying causes the token to crash in a few years, “my guess would be that they turned into an overleveraged game.”
On CoinMarketCap’s weekly chart, Ethereum has climbed out of the red zone, where it had been trading below its opening price of $3.6K. While the week initially saw bullish sentiment despite a drop in value, Ethereum has since rebounded, forming higher lows and higher highs, and is now approaching the $4K mark.
As Ethereum exchanges hands at $3,889 after gaining more than 7% in the past week, the market has corrected the prices after it was overbought for a while. As shown in the daily chart, Ethereum is trading inside a broadening wedge.
ETH faces resistance at $4K, but will break above
A broadening wedge, also known as a megaphone pattern, is a technical chart formation where price movements become increasingly volatile, creating higher highs and lower lows over time. This expanding range signals growing uncertainty and indecision in the market, as neither bulls nor bears maintain consistent control. Inside this pattern, investor behavior tends to be emotional and reactive—traders often get caught chasing breakouts or panicking during sharp pullbacks.
The wide swings can attract speculative short-term trading, with many trying to buy at the lows and sell at the highs, though the unpredictability makes this risky. Overall, sentiment is mixed and unstable, reflecting a market in conflict. While retail investors may be driven by fear or FOMO, more experienced traders or institutions might use the volatility to quietly accumulate or offload positions.
As Ethereum is heading to make another higher high, it is met with resistance and has been rejected. However, Bear Bull Power (BBP) indicator which signifies the power of the bulls and the bears, is indicating that the market has more bulls compared to the bears.
As such, ETH could push past the $4K resistance level. Once it passes the $4K mark, it may reach $4.5K according to an investor who goes by the pseudonym CryptoElites, on X.
