Ethereum (ETH) price has experienced a significant 8% rally, breaking through key resistance levels and forcing a reassessment among bearish traders. The cryptocurrency surged from a support base above $3,120, decisively breaking above the $3,160 and $3,200 resistance zones. A critical technical development was the breach of a major bearish trend line with resistance at $3,140 on the hourly ETH/USD chart (data via Kraken).
The rally propelled ETH to a high of $3,374 before entering a consolidation phase. As of the latest analysis, Ethereum is trading above $3,300 and the 100-hourly Simple Moving Average. Key support is now seen at the $3,250 zone, with major resistance at $3,340. A clear move above $3,420 could target the $3,500 resistance, with potential for further gains toward $3,550 or even $3,650 in the near term.
Beyond short-term price action, a highly bullish technical pattern has formed on the weekly chart. Ethereum has completed an inverse head-and-shoulders pattern, with the head at the April 2025 low of $1,360. The Relative Strength Index (RSI) has crossed above the neutral 50 level, and the Percentage Price Oscillator (PPO) is flattening at neutral, adding to the positive momentum. Analysts suggest that as long as ETH holds above the pattern's right shoulder at $2,663, the forecast is bullish, with a potential rebound toward $4,000 and the all-time high of $4,965.
Fundamental catalysts are providing strong tailwinds for Ethereum. Spot Ethereum ETFs in the United States recorded substantial inflows this week, with over $129 million on Tuesday alone. Cumulative inflows have now surpassed $12.57 billion, with total assets under management nearing $20 billion.
Ethereum continues to dominate key crypto sectors. Its DeFi ecosystem holds $152 billion in Total Value Locked (TVL), with a bridged TVL of $473 billion, giving it a 76% market dominance. The network processed over $8 trillion in stablecoin volume last quarter and is a leading chain for Real-World Asset (RWA) tokenization, used by major institutions like Franklin Templeton and JPMorgan.
Furthermore, institutional accumulation is ongoing. BitMine has purchased over 4 million ETH since July 2025 and aims to hold 6 million. A recent vote to increase the company's authorized shares from 500 million to 50 billion raises the possibility of even larger future accumulation.
Looking ahead, the upcoming Glamsterdam and Hegota network upgrades, expected later this year, promise to significantly boost Ethereum's transaction speed, potentially reducing the performance gap with Layer-2 networks.
