Ethereum Surges Past $3,100, Technical Indicators Signal Potential Rally to $18,000
Ethereum (ETH) has shown incredible momentum over the past week, rising above the important $3,100 threshold and gaining more than 5.5% in
Quick overview
- Ethereum has surged above $3,100, marking its first sustained stay above $3,000 since February 1st, with a 5.5% gain in the last 24 hours.
- Technical analysis indicates a bullish 'cup and handle' pattern, suggesting a potential rise to $4,200, supported by low Ethereum exchange reserves.
- The ETH/BTC trading pair has broken out of a bearish trend, signaling a possible altseason where Ethereum may outperform Bitcoin.
- Institutional interest in Ethereum is strong, with over $1 billion inflows into Ether ETFs and significant corporate treasury purchases, reinforcing bullish sentiment.
Ethereum ETH/USD has shown incredible momentum over the past week, rising above the important $3,100 threshold and gaining more than 5.5% in the last 24 hours. This accomplishment is the first time since February 1st that ETH has stayed over $3,000, which has made traders and institutional investors more hopeful.
The altcoin has done very well compared to Bitcoin lately. For example, ETH has gone up every day while BTC dropped to $116,500 on Tuesday. This difference could mean that money is moving from Bitcoin to Ethereum. Analytics company Swissblock says this is because Bitcoin’s current rally is on day 12 of what has traditionally been 15–30 day bullish expansions.
ETH/USD Technical Analysis Reveals Multiple Bullish Patterns
Cup-and-Handle Formation Points to $4,200 Target
Over the past four months, technical analysts have found a “pure cup and handle” pattern that has been forming. The pattern started in early March with a rounded bottom that went down below $1,400. It has now broken through the neckline at about $2,850. This breakthrough suggests a 45% rise to almost $4,200, which would be a big gain from where we are now.
The pattern is more likely to be true because basic measures show that Ethereum exchange reserves are at their lowest levels in eight years. This means that people are holding on to their coins and there is less selling pressure. This technical situation, along with better fundamentals, makes it likely that ETH will reach its all-time high before the end of Q3.
ETH/BTC Pair Signals Structural Shift
The ETH/BTC trading pair has broken out of its bearish structure for the first time since May 24, and it has also reclaimed the 200-day moving average for the first time in a year. This is probably the most important thing. The weekly relative strength index (RSI) has broken out of a three-year slump, and a golden cross formation is on the way.
These changes in technology, along with Bitcoin’s diminishing dominance, point to the start of an altseason in which Ethereum might do much better than Bitcoin in the next few weeks.
Fractal Analysis Suggests Extraordinary Upside Potential
1,110% Rally Projection Based on Bitcoin’s Historical Pattern
Merlijn, a crypto expert The Trader has shown a strong fractal analysis that suggests Ethereum may follow a path similar to Bitcoin’s market cycle from 2018 to 2021. The research says that the rally from April’s low of $1,550 might turn into a “vertical phase” of 1,110%, which could send ETH up to about $18,205.
The pattern shows a 63% drop followed by a 342% rise, which is remarkably similar to how Bitcoin acted during its last bull cycle. The fact that Ethereum has recently bounced back 100% since the second quarter gives this argument more weight. This suggests that a fractal breakout is starting to happen.
Fractal analysis is still only a guess and hasn’t been proven, but the historical parallels keep bullish ETH advocates hopeful. More conservative technical analysis says that ETH’s immediate goal is $4,000, which is the upper half of its 18-month cycle range.
Near-term Resistance and Support Levels
According to technical analysis, there is immediate resistance at $3,083. If this level is broken, the next objectives might be $3,153 and then $3,400. The weekly chart analysis shows that if the February-March rally pattern happens again, ETH might hit $4,200 in three to four weeks, which is the goal date of August 2025.
Traders should keep an eye on important support levels, though. The first negative support level is $2,879, and the second is $2,738. If the price goes below the 20-day exponential moving average around $2,734, the bullish thesis would be wrong, and the price might go back down to $2,500.
Institutional Demand Drives Momentum: ETF Inflows and Corporate Treasury Purchases
There has been a lot of institutional interest for Ether exchange-traded funds, with Farside Investors’ statistics suggesting that more than $1 billion has flowed into these funds since Wednesday. Recent statements say that Ethereum treasury corporations have bought more than 545,000 ETH in the last 30 days, which shows that institutional interest goes beyond ETFs.
These buying patterns show that institutions still believe in Ethereum’s long-term potential, which gives the technical breakout scenarios a solid base.
Ethereum Price Prediction
Ethereum is in a good position to go up a lot since a lot of positive technical patterns are coming together, there is a lot of institutional demand, and it is getting stronger compared to Bitcoin. While the most bullish predictions say that gains might be over 1,000%, more cautious analysis says that realistic goals are between $3,400 and $4,200 in the near future.
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