Ethereum (ETH) is exhibiting strong bullish momentum as on-chain activity and technical indicators signal potential for a major price breakout. According to analyst Ted Pillows, Ethereum's on-chain USD volume has skyrocketed 288% in just three weeks, reaching $10.38 billion – the highest level since late 2021. This surge reflects renewed institutional capital flows and growing investor confidence amid improving U.S. regulatory clarity and favorable macroeconomic conditions for risk assets.
Technically, ETH is consolidating below the $3,860 resistance level after hitting a local high near $3,850. The 4-hour chart shows an ascending triangle formation with consistent higher lows since mid-July, while the 50-day SMA provides dynamic support at $3,690. Daily charts reveal ETH has flipped the $3,300 zone from resistance to support, with the 100-day and 200-day SMAs executing a bullish crossover.
Notably, open interest across exchanges has surged to $27 billion – a multi-year high – though moderate funding rates suggest positioning isn't excessively leveraged. Analysts highlight that a confirmed breakout above $3,860-$4,107 could trigger a rally toward $4,400, potentially catalyzing an altcoin season. While short-term overbought conditions risk a pullback to $3,500-$3,650, the convergence of technical strength and fundamental tailwinds positions ETH for continued leadership in the crypto market.