- Ethereum breaks multi-year triangle, trading above $4K with technicals signaling potential new highs.
- Institutional ETH holdings surge 127% in July, supported by ETF inflows and rising on-chain activity.
- ETH/BTC ratio jumps 38% in 30 days, boosting Layer 2 ecosystem performance potential.
Ethereum has moved beyond key resistance levels after years of gradual upward consolidation. The breakout has renewed market confidence, with technical and on-chain indicators aligning for further upside. At the time of writing, ETH trades at $4,206, marking a 7.63% daily increase.
Breakout From Multi-Year Triangle Pattern
Ethereum has traded within a broad ascending triangle pattern since 2018, according to an observation by Captain Faibik. The lower trendline shows higher lows, while the upper trendline near $4,000 was tested multiple times between 2021 and 2024 without breaking. Recent weekly candles have now closed above this resistance.
The breakout level has been retested as support, with price consolidating above $4,000 before the latest upward phase. On the 4-hour chart, ETH trades above all major exponential moving averages, including EMA20 at $3,749 and EMA200 at $3,623.
Bollinger Bands are widening, showing rising volatility as buying pressure holds. Daan Crypto Trades noted that Ethereum is attempting a breakout and is trading at new cycle highs. Daily and weekly closes above this level would set up a move to new all-time highs.
Strong Fundamentals and Market Participation
Ethereum processed 1.74 million daily transactions on August 5, surpassing the peak of the 2021 bull market. Institutional holdings have surged 127.7% in July to over 2.7 million ETH, boosted by ETF inflows. Derivatives market activity has also increased.
Data from Coinglass shows open interest rising 11.15% to $58.25 billion, while options volume climbed 72.10% to $3.43 billion. Top trader positions on Binance ETH/USDT show a long-to-short ratio of 3.03, indicating a strong bias toward further gains.
The ETH/BTC ratio has risen 38% in 30 days, reflecting Ethereum’s growing strength relative to Bitcoin. Analysts suggest this could also support performance across Ethereum Layer 2 ecosystems such as Arbitrum and Optimism.
