Ethereum at Critical Juncture: Break Above $4,620 or Face Deeper Correction - Recovery Here Could Spark Major Upside Momentum

Ethereum's price action hits make-or-break territory as bulls struggle to reclaim the $4,620 level. Failure to break through this resistance threatens another leg down—but reclaim this zone, and the momentum could shift dramatically.

The $4,620 Barrier: Why This Number Matters

Market watchers are glued to screens as ETH tests a level that's separated bullish momentum from bearish pressure. It's not just another number—it's the line in the sand that determines whether we see continuation toward new highs or a retest of lower supports.

Recovery Scenario: What Bulls Need to See

A clean break and hold above $4,620 would signal strength, potentially triggering algorithmic buying and renewed institutional interest. The charts suggest that clearing this hurdle could open the path toward previous all-time highs—because in crypto, momentum breeds more momentum.

Risk Management: Because Hope Isn't a Strategy

Traders are tightening stops below recent supports, aware that another rejection at $4,620 might spark the kind of selloff that makes portfolio screens glow red. It's the classic crypto dance—greed versus fear, with real money on the line.

Meanwhile, traditional finance pundits who said 'digital gold' was a fantasy are suddenly quiet—perhaps too busy counting their 1% bond yields while ETH continues outperforming most asset classes. Again.

Image source: Getty Images.

1. Oracle

Businesses are increasingly turning to cloud services to put their cloud-stored data to use by incorporating AI and potentially gain an advantage. This is a huge opportunity for(ORCL 3.33%), which already leads in database management services.

Businesses have relied on Oracle's database and software for years. Over the last year, it generated $12 billion in net profit on $59 billion in revenue. It has reported consistent but low (single-digit) revenue growth over the last 10 years, but Oracle's cloud infrastructure business is exploding right now.

In the last quarter, Oracle's remaining performance obligations (contracted revenues not yet realized) jumped 359% year over year to reach $455 billion. That is three times what it reported in the previous quarter!

Demand should keep growing. One advantage of Oracle's versatile cloud offering is that it enables businesses to use top large language models, such as Google's Gemini or xAI's Grok, on data stored with any of the top cloud platforms, likeWeb Services orAzure. 

The company's multicloud database revenue grew 1,529% last quarter. Management expects to sign several more deals in the next few months that will take its remaining performance obligations to over $500 billion.

The stock has nearly doubled year to date, but it's not too late to buy shares. These impressive numbers clearly show that the new industrial revolution driven by AI is still in the early innings, and that spells more upside for long-term investors in Oracle.

2. Broadcom

Investors interested in buying shares of Oracle or other leading cloud service providers should also consider(AVGO 1.19%). This leading semiconductor company supplies a lot of the components needed for high-performance computing in data centers, which are the backbone of cloud computing.

Broadcom is one of the most valuable companies in the world, with a current market cap of $1.7 trillion. It has consistently reported double-digit revenue and earnings growth for several years, which reflects a wide competitive moat in supplying networking, software, and specialized chips for smartphones, wireless products, and electronic devices in industrial markets.

AI data centers are driving strong demand for Broadcom's custom AI accelerators. Revenue from AI products grew 63% year over year last quarter, making up 33% of the company's total. Management also doesn't see this level of demand slowing in the NEAR term, with next quarter's AI chip revenue expected to be up 66% year over year.

Continued advancement in AI will require more networking bandwidth and processing power in data centers, which plays to Broadcom's strengths. The company's consolidated backlog of orders hit a record $110 billion, indicating robust demand for Broadcom's networking and semiconductors for AI.

Broadcom is a highly profitable business, which reflects management's investment in markets that generate high margins. It paid a quarterly dividend of $0.59 per share last quarter out of adjusted earnings of $1.69.

The stock is up 56% year to date. It could be volatile after this sharp run, but it should continue to hit new highs over the next five years. Spending on AI data centers is only going to keep growing, which points to more gains for Broadcom shareholders.