- Ethereum surged above $3,600, gaining 20% in three days after reclaiming the $3,325 supply zone this week.
- RSI and MACD show strong momentum, but overbought conditions hint at a possible short-term correction.
- ETF inflows and Coinbase premium reveal rising U.S. institutional demand, reinforcing Ethereum’s bullish trend.
Ethereum (ETH) reached over the mark of $3,600, despite this being the highest price since early 2024. Ethereum gained more than 20% within three trading sessions after recapturing the $3,325 supply zone. At the time of writing, ETH is trading at around $3,617, showing a 3.94% increase from the previous day. This bullish break confirms a breakout above a long-time triangle structure, marking a new bullish power.
Source: TradingView
The current price movement demonstrates that Ethereum is in an evident bullish pattern, with stable higher highs and higher lows observed during July. The candlesticks are huge and long with very little indication of the selling pressure. Buyer buying power is dominant, and progress gained ground after every valid closing above important resistance areas.
Ethereum Holds Gains Amid RSI Spike
The RSI index has further identified that Ethereum is in an overbought condition. The 14 day RSI indicates 85.53, which is more than the regular value of 70. Although this is a sign of strong demand, it also indicates that large-scale correction can take place in the short term.
Also Read: Ethereum Rally: Will ETH Break $3,980 and Hit New Highs in 2025?
Some traders might want to take profits to grasp. At the same time, though, high RSI levels may indicate good uptrends, and thus RSI cannot be used to indicate an excellent uptrend.
MACD is also supporting a bullish view. The MACD line stands at 90.6, higher than the signal line, which stands at 150.0. The discrepancy between the two lines keeps on increasing. There is an upward trend in the rally because green histogram bars are increasing. The bullish cross that was witnessed in the first half of this month is not yet ineffective.
Source: TradingView
The breakout has taken support to the new levels. A major support is currently found in the $3,400 region. As there is the bullish move, below that, there is the mark of $3,300 that can shut down the trend. Nowadays, Ethereum is still far beyond these limits.
Ethereum Sees Surge in Institutional Demand
On-chain metrics provide weight to the move. CryptoQuant, an analytics firm, revealed a premium on Ethereum on Coinbase. This platform is frequently used by U.S. institutions. The premium is an indicator of an increasing demand by big-time investors. This has never been the case in the recent months.
The inflows into spot ETFs have also been at all-time highs. As the market data indicates, the funds flowing into Ethereum-based ETFs are at the highest levels on a daily basis. This means that there is high demand on the part of the U.S. investors. Concentration among institutional players is increasingly becoming apparent.
Source: CryptoQuant
There is also an increase in whale activity. The pattern of buying is recorded as increasing steadily by large wallets in the U.S. It corresponds to the ETF and Coinbase premium. Uptrend is experiencing clear support by high-volume participants.
Although the rise has been quite steep, the market is not yet overheated, say analysts. The existing indicators imply that there is a space to continue. But the repetitive sudden rallies can become an issue in the second half of 2025. In case of such movements being excessive, it will pose more risk of overheating.
Presently, the trend has been positive, and there is a lot of momentum. The demand of the institutions is on an increase. Unless there is a keen turnaround, Ethereum seems to be located in an advantageous position. The $3,400 and the $3,300 range are closely monitored by traders. A gap below those may change the structure.
Ethereum has had one of its steadiest streaks during the current year. All reasons are cleverly signaled by the price action, indicators, and investor behaviour. There is the potential to pull back over the near term. Still, the overall structure is staying bullish.
Also Read: SharpLink Buys 20,279 Ethereum, Now Holds More Than Ethereum Foundation