Ethereum is making strides past the $3,800 mark, exhibiting strength unseen since early 2024. The cryptocurrency, second in market cap, has soared by over 50% since late June without any significant pullbacks, indicating strong bullish control. This upward trend is fueled by rising momentum, increased institutional interest, and enhanced regulatory clarity, all boosting investor confidence.
Ethereum is now nearing the $4,000 psychological threshold, and many experts predict a potential breakout soon. On-chain metrics and market structure remain robust, with ETH comfortably resting above crucial moving averages and previous resistance levels now acting as support.
Should the bullish momentum persist, surpassing $4,000 could pave the way for new multi-month highs and possibly initiate the next major upward movement. Attention is focused on ETH’s capacity to maintain momentum and tackle resistance levels amidst spreading bullish sentiment.
### ETF Inflows Drive Ethereum Surge Amid Caution
Leading analyst Ted Pillows has unveiled data showing Ethereum ETF inflows increased by $2,182,400,000 last week, indicating a growing institutional appetite for ETH. Pillows believes Ethereum FOMO is just beginning, as traditional investors increasingly view it as a viable asset due to clearer regulations in the U.S. With legal frameworks becoming more structured, Ethereum benefits from its status as the top smart contract platform in the evolving crypto landscape.
These inflows signal renewed faith in Ethereum’s long-term potential, supported by strong fundamentals and growing institutional interest. This capital influx has helped ETH reclaim the $3,800 level and maintain a strong uptrend started in late June. Nevertheless, some analysts urge caution. Although the trend favors the bulls, a healthy correction to reset momentum and build a stronger base for future gains has yet to occur.
As Ethereum nears the significant $4,000 resistance for the first time since December, upcoming weeks will be crucial. Bulls aim to break past this level to confirm upward continuation, though short-term consolidation remains possible. While momentum is robust, a brief pause could solidify the foundation for future advances.
### ETH Weekly Chart Highlights Significant Strength
Ethereum’s weekly chart underscores a powerful breakout, with ETH currently trading around $3,800—a milestone not reached since early 2024. This surge follows a clean reclaim of the $2,852 support and a swift move above the long-held $3,742 resistance zone, driven by increased volume and a steep price rise, reflecting strong bullish momentum. Crucially, Ethereum is trading well above the 50, 100, and 200-week moving averages, which are clustered between $2,400 and $2,700, providing a solid base for further growth.
The current setup resembles early stages of Ethereum’s past bull cycles. Should the bulls maintain control and push decisively past $4,000 in the coming days, ETH might enter a price discovery phase, potentially reaching new all-time highs later this year. However, this level has been a formidable resistance previously, as evidenced in early 2022 and late 2023, so the possibility of rejection remains.
Despite this, the sharp rally with no major retracement since June suggests a high chance of short-term consolidation or correction. Nevertheless, the broader trend remains bullish, with momentum clearly favoring Ethereum.
Featured image from Dall-E, chart from TradingView
