- Ethereum rebounds from $1,500–$1,600 support zone, forming a strong bullish candle and reclaiming critical market structure on the weekly chart.
- On-chain data shows record-breaking activity with 15.4 million weekly addresses and increased Layer 2 adoption across Ethereum’s ecosystem.
- Institutional accumulation and improving network fundamentals suggest Ethereum could target $3,900, with $5,250 a potential breakout level ahead.
Ethereum is showing renewed strength as technical structure and rising network activity suggest the early stages of a trend reversal.
Ethereum Rebounds from Technical Support Zone
Ethereum has regained upward momentum on the weekly chart, according to Crypto Caesar. The price recently rebounded from a confluence zone between $1,500 and $1,600. This area includes a long-term ascending trendline that has historically acted as a support level.
After briefly dipping into a high-liquidity demand zone, the asset bounced back strongly. The rebound produced a bullish weekly candle that reclaimed key structure. Historically, this area has aligned with institutional accumulation phases.
The price is now approaching resistance near $2,150. This level has previously served as both support and resistance. If Ethereum breaks through, the next target range could be $3,500 to $3,900.
Ethereum Trends Toward a Reversal Pattern
Ethereum is printing a long-legged doji on the month chart, which was posted by another analyst Trader Tardigrade. This candlestick formation tends to confirm indecision or exhaustion of declining pressure following a downtrend of some duration.
Although not verification of a shift in trend, the pattern may be indicative of the market probing a bottom. Combined with recent strength on the weekly chart, Ethereum may be entering a transitional phase.
If momentum holds, a clean break above $2,150 could open the path to higher levels. The $3,500 to $3,900 area is being watched, as it was a prior distribution zone. Should volume support the move, the $5,250 level may reappear in market discussions.
This shift in structure is supported by historical context and fresh technical strength, suggesting a renewed phase for Ethereum’s price action.
On-Chain Data Points to Growing Ethereum Activity
On-chain metrics are showing an increase in Ethereum adoption. Crypto Patel noted that active addresses reached 15.4 million in a week. This marks an all-time high and a 62.7% weekly increase.
Layer 2 networks are also gaining usage. Ethereum’s L2 dominance has now reached 6.65x, showing stronger reliance on scaling solutions. This trend supports ongoing improvements in network efficiency.
Institutional activity also appears to be increasing. BlackRock reportedly continues to accumulate Ethereum. This activity reflects broader interest from financial institutions amid network and structural improvements.
The combination of technical structure, historical demand zones, and rising user engagement provides Ethereum with a renewed foundation. While resistance remains, current data supports growing confidence around Ethereum’s near-term outlook.
