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Ethereum is back in the spotlight as renewed optimism lifts the cryptocurrency market. Strong institutional interest, upbeat sentiment, and supportive technical trends are fuelling momentum, with traders watching for the next breakout that could shape the weeks ahead.
Market overview
The cryptocurrency market started the week on solid ground, supported by strong capital inflows and a noticeable improvement in investor sentiment.
Spot Ether ETFs recorded an impressive $1.01 billion in daily net inflows, while Ethereum’s total value locked (TVL) climbed past $90 billion – both clear signals of growing institutional interest in ETH. This momentum mirrors a bullish positioning trend across multiple asset classes, reinforcing a risk-on mood.
Bitcoin is trading at $119,335, with high-profile forecasts suggesting a potential year-end target of $150,000.
Given the historical Bitcoin-Ethereum correlation, traders and analysts expect ETH price action to follow suit.
Currently, ETH/USD is steady at $4,622.06, marking a modest daily rise of $3.36 (0.07%) and staying within striking distance of its November 2021 high at $4,878.
This rally builds on the April low of $1,399.39 and gained additional momentum after the early-August breakout above the $4,300 resistance zone.
The bullish narrative was further boosted by news that BitMine Immersion Technologies plans to raise up to $20 billion for Ethereum acquisitions.
Historically, Ethereum’s market capitalisation has averaged 30%–35% of Bitcoin’s during previous crypto bull runs. If Bitcoin reaches the $150,000 mark, that ratio would project ETH towards $8,656.
Even a more conservative 21.7%–30% correlation would still suggest an Ethereum price range of $5,376–$7,420 in the current market cycle.
Technical analysis
Ethereum (ETH/USD) has staged a strong recovery since its April through near $1,399, breaking through multiple resistance levels and recently reaching $4,622.
Picture: ETH/USD holds near 4,622 as bullish momentum builds, shown on the VT Markets app.
The ETH chart shows a pattern of consistent higher highs and higher lows, with price action firmly above both short-term and medium-term moving averages – a classic bullish structure in crypto technical analysis.
The MACD indicator supports this positive trend, with a widening gap between the MACD and signal lines, signalling sustained buying pressure.
In the near term, the $4,620–$4,650 range acts as the immediate resistance zone to watch. A confirmed breakout could pave the way for a test of the psychologically important $5,000 level.
On the downside, initial Ethereum support sits near $4,200, with a stronger support level around $3,800.
Overall, the bias remains bullish as long as ETH price holds above its rising 30-day moving average, maintaining upward momentum in the broader cryptocurrency market.
Cautious forecast
A decisive daily close above $4,878 would likely serve as a strong bullish breakout signal for Ethereum, opening the door to a test of the psychological $5,000 level.
If positive sentiment persists in the cryptocurrency market, Bitcoin price momentum continues towards $150,000, and spot Ether ETF inflows remain solid, ETH/USD could extend its rally into the $5,376–$7,420 range.
This projection aligns with historical Ethereum-to-Bitcoin market capitalisation ratios observed during previous crypto bull cycles.
Sustained institutional demand and increased retail participation could further fuel buying pressure, pushing Ethereum price action closer to a potential all-time high.
However, if ETH fails to reclaim the 2021 peak, the bullish outlook may weaken. A slowdown in ETF inflows, shifting Bitcoin-Ethereum correlation, or a broader risk-off move in global markets could trigger a price correction.
In that case, initial Ethereum support is expected near $4,480, with a stronger technical floor around $4,300.
Such a retracement could be a healthy consolidation phase within the broader uptrend, potentially setting the stage for Ethereum’s next leg higher in the current market cycle.
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