Ethereum has surged nearly 4% to trade above $1,720, buoyed by easing geopolitical tensions and renewed whale accumulation, raising hopes that it may break out of a weeks-long bearish trend. The rally came as oil prices retreated after the Strait of Hormuz reopened, calming inflation fears that had pressured risk assets.
Lookonchain data revealed a whale wallet borrowed another $10 million in USDe from Aave to purchase 5,818 ETH at $1,719, bringing the total borrowed stablecoins to $153 million with an estimated liquidation price around $1,420. This accumulation, alongside a broader market rebound that saw Bitcoin gain roughly 3%, helped ETH recover from a local low near $1,510.
Despite the upward move, spot Ethereum ETFs recorded a fifth straight week of net outflows, totaling nearly $900 million, signaling continued caution among institutional investors. However, on-chain indicators suggest selling pressure may be easing, as outflows from Bitcoin and Ethereum investment products fell sharply week-over-week.
On the technical front, Ethereum broke above a symmetrical triangle pattern on the four-hour chart, pushing past $1,700 and flipping the Supertrend indicator bullish with support at $1,658. The daily RSI has climbed from oversold levels toward 37, and the MACD histogram turned positive for the first time in several sessions. Analysts pointed to the $1,850–$1,900 resistance zone as critical: a decisive break above could invalidate the larger bearish flag and open a path toward $1,900, while failure would risk another leg lower.
Funding rates have also returned to positive territory, showing leveraged traders are again paying to maintain long positions. Liquidation clusters highlight upside targets between $1,740 and $1,790, with a major support pocket near $1,650.
Nevertheless, fundamental risks remain. Weakening token burn dynamics from Layer‑2 migration and capital rotation into AI equities continue to cap demand. While the technical breakout and whale buying offer near-term optimism, Ethereum’s ability to hold the $1,650–$1,700 range and overcome the $1,850–$1,900 barrier will be crucial for a sustained recovery.
