Ethereum has decisively breached the $4,100 resistance level, signaling strong bullish momentum with technical indicators pointing toward a potential $7,200 price target. The breakthrough follows a weekly chart breakout from a broadening wedge pattern, suggesting accelerating upward trajectory through 2025.
On-chain data reveals significant accumulation behavior, with surging trading volume indicating heightened buyer interest and reduced sell-side pressure. This aligns with institutional demand surging sharply, evidenced by U.S. spot ETH ETFs attracting $727 million in daily inflows during mid-July – the largest single-day influx this year.
Technical analysis employing Elliott Wave theory supports mid-term targets between $6,700 and $7,200, while long-term projections suggest $10,000 potential. Market sentiment is further buoyed by Ethereum’s expanding Layer 2 ecosystem, where scaling solutions like Arbitrum and Optimism drive increased network efficiency and adoption.
The convergence of bullish technicals, institutional participation, and Layer 2 growth reinforces Ethereum’s strengthening market position as analysts monitor for sustained momentum toward new yearly highs.