Ether's price is poised for a significant surge, potentially reaching unprecedented heights. The question remains: Can Ether transform the $4,000 psychological barrier into a reliable support level?

Over the past week, Ether's price has skyrocketed by over 27%, turning crucial resistance levels into support. This remarkable rally has seen Ether break out of its falling wedge pattern, which often signals a reversal from a downward trend. Crypto trader Jelle highlighted the breakout's significance, stating that Ether has broken out of the falling wedge, flipped key areas into support, and is now pushing towards $4,000. He believes new highs and all-time highs are next.

The decreasing dominance of Bitcoin suggests that traders are shifting their focus to Ether. The ETH/BTC pair has rebounded recently, with Bitcoin's dominance dropping by 0.98% over the past five days, while Ether's dominance increased by 4.4%. In the last 24 hours alone, Ether's dominance rose by 1.45%, whereas Bitcoin's dominance fell by 0.57%, according to TradingView.

The current price rally of Ether is largely attributed to positive developments surrounding the first spot Ether exchange-traded funds (ETFs). On May 20, Ether's price jumped nearly 20% in a single day, following reports that the U.S. SEC might approve spot Ether ETFs, potentially due to political pressure. Reports indicate that ETF exchanges have been asked to update their 19b-4 filings. Arthur Cheong, founder and CEO of DeFiance Capital, expressed optimism, stating that Ether could reach $4,500 before the ETFs start trading.

Despite this optimism, Ether's price faces significant resistance at the $4,000 mark. A move above this level could liquidate over $433 million worth of cumulative leveraged short positions across all exchanges, according to CoinGlass data. Popular crypto analyst Rekt Capital emphasized the importance of a weekly close above $3,956 to sustain bullish momentum. He stated that Ethereum just needs to Weekly Close above $3956 (green) to move into $4000+ territory. At the moment, #ETH is forming a Lower High.