Ethereum has bounced back from losses yesterday, gaining an additional 2% today. The price hit a high of $3,941 before pulling back during US trading hours. Sellers tried to test the support levels, but buyers held strong around the 200-hour moving average at about $3,736. Right now, Ethereum buyers are working to surpass the $4,000 mark. The overall mood in the cryptocurrency market is positive, especially as Wall Street reaches new record highs. However, the upcoming earnings reports from major tech companies could influence market sentiment and impact Ethereum’s chances of breaking through the $4,000 barrier. The $4,000 level is crucial to watch in Ethereum’s price movements. Buyers are concentrating on pushing Ethereum toward the $4,000 target. The support at the 200-hour moving average indicates strength in the market. This suggests that traders should prepare for a possible breakout attempt soon. This week’s tech earnings reports will be a significant test for this bullish trend. These reports may lead to short-term volatility across the market, including Ethereum, creating opportunities for traders who thrive on price fluctuations. Recent data backs this positive outlook, showing that Ethereum ETFs had net inflows of over $1.2 billion in July 2025. Additionally, there’s substantial activity in the options market, with many traders holding call options at a $4,200 strike price set to expire in mid-August. This indicates that many expect the upward trend to continue beyond the $4,000 level. Given the expected market fluctuations, we are using bull call spreads. This strategy allows us to target movements toward $4,000 or higher while limiting our risk. It’s a way to pursue gains without full exposure if the resistance holds. However, if the tech earnings turn out to be disappointing, we might see a quick retreat to support around $3,700. A similar situation occurred in early 2025, where a failed breakout resulted in a sharp 15% drop. Therefore, holding some protective puts could be a smart way to guard against any unexpected negative turns.

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