Analyst Predicts $4K Ethereum Rally as SEC Clarifies Liquid Staking Rules

Ethereum is trading at $3,589.71 down 1.15% in the last 24 hours, as consolidation close to a major technical level continues. Even though price action still remains uncertain, an analyst has provided an outline of a potential move to $ 4,000 and he cites a confirmation of the breakout pattern. At the same time, the SEC has issued a statement clarifying that some liquid staking setups may not be classified as securities—reshaping expectations around Ethereum’s regulatory future.

Ethereum Price Holds Above Key Support as Analyst Eyes $4K Breakout

Ethereum is retesting the 50 percent Fibonacci retracement level following its latest reverse and price has been forming a key support around $3500. According to analyst TommyJR, holding this zone would confirm the formation of a higher low, which could reinforce the bullish structure.

As long as this support holds, he expects that there can be a possible rally to the $4,000 level. The long term Ethereum price prediction is rooted in the strength of this key support. A sustained hold at $3,500 is essential for validating the broader upward trend.

The analyst has also confirmed that Ethereum has just broken out of a mini flag pattern on the upside. This breakout confirms the current bullish sentiments and this correlates with the prediction of upward movement to $4,000 level. The breakout acts as a precursor that the continuation of the bullish trend may potentially have started.

However, whether the move is solid or not will depend on whether the $3,500 support level holds. With the technical structure aligning and price reclaiming an upward trend, the outlook remains positive—provided Ethereum does not fall below this key level.

Whales Accumulate ETH as Regulatory Clarity Boosts Market Confidence

The SEC recently clarified that certain liquid staking setups may not fall under securities regulations, easing long-standing uncertainty surrounding Ethereum’s staking economy.

This could open the door to staking-based ETFs and more involvement and interest on the part of institutions especially those awaiting regulatory clarity. This announcement has helped improve investor confidence and strengthened Ethereum’s bullish outlook.

Backing this sentiment shift, Ethereum social dominance has been on an increasing trend and currently sits at 11.41%. This implies a steady increase in community attention and retail engagement—both of which typically align with stronger price performance during key breakout phases.

Institutional and whale activity also gives Ethereum more ground. Whale Alert reported two significant transfers; 36,917 ETH by Coinbase and 15,512 by OKEX to unknown addresses, a significant accumulation of more than 188 million dollars. Besides, BlackRock purchased 23,874 ETH worth $88.8 million, which highlights the increased trust of institutional actors.

These inflows occurred as Ethereum consolidated above a key support zone, strengthening the idea that strategic buying is in process. The combination of regulatory clarity, rising social traction, and visible whale interest provides strong backing for the Ethereum price prediction of an extended rally toward higher levels.

To conclude, Ethereum appears well-positioned to reclaim upward momentum if it holds above the $3,500 support. Backed by a confirmed breakout, whale accumulation, and a more favorable regulatory stance, ETH may soon attempt a move toward the $4,000 mark.