Ethereum Price Analysis: Why ETH Could Rally to $4000 Soon

Highlights:

• Ethereum is consolidating between the $3635.1 resistance and $3591.2 support 
• Ethereum could rally to $4000 if bulls breach the $3635.1 resistance 
• US government reopening could help drive momentum through resistance 

Ethereum (ETH), like the rest of the cryptocurrency market, is in the green today. At the time of going to press, Ethereum was trading at $3605.83, an increase of 5.61% in the day. Ethereum trading volumes are also increasing throughout the day. At the time of going to press, volumes were up by 61.54% to stand at $35.42 billion. 

This surge in trading volumes alongside the price indicates that money is starting to flow strongly into Ethereum. This means that more gains can be expected in the future. Multiple factors support a continuation of the momentum Ethereum has built up in the day. 

US Government Reopening Likely to Send Ethereum Higher

The first is the fact that the US government has been reopened. The US government was shut down for 40 days, the longest shutdown in US history. While the shutdown had little impact on the markets in its initial days, its prolonged nature was starting to create uncertainty. This uncertainty hit high-risk assets such as cryptocurrencies the hardest. However, now that the government has been reopened, money is beginning to flow back into risk-on assets.

It's official! Senate advances bill to reopen the federal government – 60-40.

Once it clears Senate, it goes to the House pic.twitter.com/v3K8jt9A7g

— Sara Rose 🇺🇸🌹 (@saras76) November 10, 2025

Cryptocurrencies are benefiting immensely because they offer a more substantial return on investment than most conventional assets in bull markets. Ethereum, being one of the best-known and most credible altcoins, is poised to capture the majority of the post-government reopening momentum. This may explain why it has shown strong momentum in the day, with rising volumes. If the current momentum continues, the odds are high that Ethereum could return to prices above $ 4,000.

Shrinking Spread Between SOFR and EFFR Could Boost Ethereum

Like Bitcoin, Ethereum is also set to benefit from the shrinking spread between the Secured Overnight Financing Rate and the Effective Federal Funds Rate. Since the shrinking spread means banks will be more willing to fund risky, yet high-potential investments, cryptocurrencies are likely to benefit the most.

Ethereum is particularly well-positioned to benefit, as altcoins have historically outperformed Bitcoin in bull markets. However, since most altcoins have a shaky foundation, a lot of this capital is likely to flow into Ethereum.

All the info I posted in earlier note is public information provided by FRED and UST just google it to verify.

SOFR — When Funding Costs Break, Liquidity Breathes

This chart isn’t noise — it’s the signal.
What you’re looking at here is the entire funding backbone of the U.S.… pic.twitter.com/jccdHeRLLD

— Sarosh (@SaroshQ2022) November 9, 2025

That’s because, as the second-largest cryptocurrency by market cap, it is better known than other altcoins. Ethereum also boasts a robust ecosystem, which lends it a substantial underlying value. Ethereum also has a growing institutional base thanks to investment platforms like ETFs. As such, a strong capital flow into the cryptocurrency market could send Ethereum to new highs in the short to medium term. 

Ethereum Trading at Discount as Macros Get Better

Ethereum is also set to benefit from the improving macro environment, which comes at a time when Ethereum has made a significant pullback. From highs of over $4,700, Ethereum is currently trading at $3,600. This gives investors the impression that they are making a value.

Even a retest of recent highs would be an impressive return on investment in the short term. Such a perception of value could trigger FOMO buying and send Ethereum to new highs in the short term. Under current market conditions, even a rally to prices above $5k is a possibility in the short term.

$ETH/weekly#Ethereum continues to hold strong in this Wyckoff Reaccumulation pattern 🔥 https://t.co/BlJWJZDqPc pic.twitter.com/ywlI5jMk0l

— Trader Tardigrade (@TATrader_Alan) November 10, 2025

Technical Analysis – Ethereum Consolidating After Weekend Rally

Following a rally over the weekend and the conclusion of the US government shutdown, Ethereum is consolidating. It is currently trading between the $3635.1 resistance and $3591.2 support. If bulls take control and push Ethereum through the $3635.1 resistance, then a rally to $4000 could follow.

On the other hand, if there is a correction through the $3591.2 support, then a correction to around $3200 could follow. Of these two scenarios, the odds are higher for a rally to $4000 in the short term. That’s because the reopening of the US government is incentivizing a strong flow of capital into risk-on assets, including Ethereum.