Ethereum has broken through the $3,000 barrier for the first time in 2025, currently trading at $3,020.86, marking a massive turnaround from its April low of $1,794.
Source: Cryptonews
The milestone comes as Bitcoin surges to new all-time highs above $118,400, creating perfect storm conditions for the second-largest cryptocurrency to begin its own parabolic advance.
The breakthrough follows a grueling eight-month battle that saw Ethereum decline from January’s opening near $3,298 to its cycle low in April.
Historical price data reveals a volatile journey through 2025, with February closing around $2,900, March at $2,650, and the devastating April collapse to $1,794 before recovery began.
President Trump’s recent declaration on Truth Social that crypto is “through the roof“ has triggered massive buying pressure across digital asset markets.
The timing of Trump’s endorsement, combined with unprecedented dollar weakness, has created ideal conditions for risk asset appreciation, with institutional investors interpreting this as a signal of continued monetary accommodation.
The Ethereum breakout coincides with Bitcoin’s explosive rally past $117,000, which liquidated over $1.14 billion in leveraged positions within 24 hours.
Over $243 million in Ethereum liquidations alone contributed to the market-wide short squeeze, which pushed both cryptocurrencies to new highs.
Dollar Collapse Fuels Crypto Rally Across Major Assets
Trump’s proposed 300-basis-point interest rate cut has created massive tailwinds for alternative assets, as the dollar experiences its worst performance since 1973.
The Dollar Index has fallen 10.1% year-to-date, trading 6.5 points below its 200-day moving average, the largest margin in 21 years.
The emergency-level monetary intervention into a growing economy, with an annual growth rate of 3.8%, would push inflation above 5% while driving the dollar down an additional 10%.
Historical precedent warns against such aggressive policy, as the Federal Reserve has never implemented cuts exceeding 75 basis points outside recession periods.
Kobeissi Letter analysis projects dramatic asset price inflation following potential rate cuts, with gold targeting $ 5,000 per ounce and continued capital flight into cryptocurrencies.
Bitcoin’s correlation with dollar weakness positions digital assets as primary beneficiaries of monetary debasement and currency depreciation.
Corporate treasury adoption accelerates as companies seek protection from currency debasement, with over $1 billion allocated to crypto treasuries this week alone.
The institutional revolution combines with retail FOMO to create sustained buying pressure.
Bitcoin ETFs have purchased $15 billion worth of BTC since mid-April, according to 10X Research, with steady institutional demand supporting higher trading ranges.
Trump’s crypto-friendly policies include establishing a national crypto reserve and appointing pro-crypto officials to key regulatory positions.
Technical Analysis Confirms Bullish Breakout Pattern
Ethereum’s daily chart reveals a textbook breakout scenario following months of consolidation within a descending channel pattern.
The asset spent considerable time forming lower highs and lows, ranging from $4,000 to $1,500, before breaking decisively above the Ichimoku cloud resistance.
Source: SMART_MONEY_FLOW_SMF on TradingViews
The Ichimoku cloud breakout represents a shift from bearish to bullish momentum, with price definitively reclaiming the psychological $3,000 level.
The technical setup establishes $2,950-$3,050 as key support after the breakout, with ascending projections targeting $3,600, $4,200, and $4,800.
In fact, according to MerlijnTheTrader, the weekly perspective provides even stronger bullish confirmation, showing a clean reclamation of the $2,200 resistance with minimal pullbacks.
The price action indicates strong buying pressure across timeframes, with blue arrow projections extending toward $10,000 based on historical bull market patterns.
The broader context of Bitcoin establishing new highs above $117,000 provides additional momentum for Ethereum, which historically outperforms Bitcoin in percentage terms during parabolic phases.
Previous resistance levels at $4,000 represent the next major target given historical significance as cycle highs.
Key risk factors include failing to hold above the $2,800-$2,900 support level, which could indicate false breakout scenarios and potential retests of the $2,200 levels.
However, current momentum and institutional participation suggest a continued upward trajectory toward $4,000 initially.
Based on technical indicators and market structure, Ethereum is positioned for continued appreciation toward $3,600-$4,200 in the near term, with the potential for an extension to $4,000+ if Bitcoin’s momentum sustains.
The post Ethereum Breaks $3,000 for First Time in 2025 After Long Battle – $4,000 Next? appeared first on Cryptonews.
