- Ethereum trades near $3,899 with $4,000 as key resistance, forming a bullish breakout setup.
- Institutional inflows and whale buying lift ETH holdings to 2.7M, reducing exchange supply.
- On-chain data shows strong $3,626 support, with indicators favoring a Q3 2025 move toward $5,000.
ETH is just one bullish candle away from a major breakout. The current price setup mirrors the May–June 2025 pattern, which previously led to a yearly high. At the time of writing, Ethereum was trading at $3,899, positioning itself close to key resistance levels that could trigger the next upward move.
Ethereum Approaches Breakout Zone as Price Reclaims Key Levels
According to an analysis prepared by Ted Pillows, Ethereum is testing a critical resistance area following a series of bear and bull traps. The ETHUSDC chart identifies a bullish setup, with Ethereum now rebounding from the $3,400 range and approaching the $4,000 mark.
Lennaert Snyder also reported that ETH has reclaimed the $3,900 range high on the 4-hour chart. “All potential higher-lows are huge opportunities,” he said, adding that ETH is positioned to move beyond $4,000. A confirmed breakout would signal a change in market structure and attract additional bullish interest.
Ethereum’s technical chart shows a bull flag pattern forming, with price action currently testing the flag’s upper boundary. A confirmed breakout above this range could send Ethereum toward its 2021 high and beyond. The $4,000 level remains a key resistance, with the next target zones between $4,255 and $4,369.
Institutional Activity and On-Chain Metrics Support Bullish Setup
According to market data, July marked a record high in Ethereum monthly transactions at 46.67 million. Active addresses climbed to over 683,000, supported by institutional accumulation and rising DeFi activity. ETF-related inflows drove corporate ETH holdings up 127.7% in July, reaching 2.7 million ETH.
Large wallet holders and institutional entities added more than $1.2 billion in ETH during this period. Exchange supply continued to decline, signaling reduced sell pressure and long-term holding behavior. The In/Out of the Money Around Price indicator shows strong support around $3,626, with over 3.48 million wallets accumulating near that level.
Ethereum’s current funding rate remains positive, while the Bull Bear Power indicator has entered the positive region. These signals, combined with strong fundamentals and technical patterns, create a setup that supports a potential move toward the $5,000 range in Q3 2025.
