Ethereum has finally shattered the persistent $2,800 resistance level, with bulls now firmly in control of price action. At the time of writing, ETH is trading above $3,280 for the first time since February and sits just 9.65% away from breaking out of a four-year channel that has kept it beneath its 2021 all-time high of $4,891.
With a bull flag pattern forming and trading volume surpassing $40 billion, it appears likely that Ethereum will trade beyond $3,500 before the weekend and could reclaim the key $4,000 psychological level sooner than anticipated.
Ethereum Breakout to Outperform the Market Across Major Metrics
Ethereum has demonstrably outperformed competing cryptocurrencies on every major metric in recent periods.
Data from SosoValue reveals that Ethereum has experienced daily inflows from institutional investors through ETFs for eight consecutive trading sessions, with an average daily purchase of $120 million.
Source: SosoValue
BlackRock, through its ETHA index, has accumulated over $5 billion worth of Ethereum, with more than $1 billion in ETH accumulated between June and the present time.
Ethereum co-founder Joseph Lubin, who serves as Ethereum’s equivalent of Michael Saylor, is now implementing the MicroStrategy Bitcoin playbook on $ETH.
Tom Lee, chief investment officer (CIO) at Fundstrat and chairman of Bitmine Immersion Technologies, noted that ETH has remained range-bound since 2021.
However, the growth of stablecoins such as USDC and USDT, as well as Wall Street’s tokenization of real-world assets, is driving increased demand for the DeFi blockchain.
He emphasized that transaction activity is also accelerating on Ethereum, with over 1.2 million daily transactions, serving as an indicator of renewed investor interest.
Similarly, legendary investor Peter Thiel is participating in Tom Lee’s Bit Mine initiative to execute the same strategy for ETH.
SharpLink Gaming Accumulates $700M in ETH as Price Targets $4,000 and Beyond
SharpLink Gaming has been aggressively accumulating positions, building a $974 million ETH portfolio.
The Nasdaq-listed company recently purchased and staked an additional $15.8 million of ETH into its LSETH, establishing it as the largest single corporate holder of $ETH, exceeding even the Ethereum Foundation’s holdings.
These developments are occurring while the number of leveraged shorts on ETH reaches an all-time high, and ETH/BTC remains 50% below its November 2024 peak.
The encouraging news is that ETH/BTC has now reclaimed the 1D EMA200 for the first time in a year, which has restored the Ethereum fractal, mirroring the same structure as $BTC experienced during 2018–2021.
Source: TradingView
Many market participants are now targeting the $4,000 mark as the next major level, which appears well within reach.
Popular crypto Key Opinion Leader “Bonk Guy” even anticipates targets reaching $10,000 before the current cycle concludes.
He expressed the view that ETH’s journey to $10,000 will be more rapid and aggressive than many expect, stating that people should “get ready for the most explosive bull run of our lifetimes.”
Technical Analysis: Wyckoff Accumulation Pattern Complete
From a technical perspective, the ETH/USD daily chart displays a clear Wyckoff accumulation pattern, culminating in a breakout above resistance following a “Spring” phase and a “Coil and Compression” zone.
The asset has moved decisively above the $3,100 level after the “First Expansion/Release,” confirming bullish momentum and entering the designated “Take Profit zone” near $3,278.
Source: TradingView
This substantial upward movement is supported by previous phases, including the Secondary Test (SC), low-volume test, and successful breakout over the downtrend line (creek), all of which indicate a completed accumulation cycle.
Price action is now advancing into higher resistance levels, with $3,454 and $3,757 serving as the next major upside targets.
Should price experience a retracement, the Fibonacci retracement zones between $2,750 and $2,650 (0.5–0.618 levels) could provide strong support before any continuation.
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