Ethereum (ETH) is approaching the critical resistance level of $4,000, trading at $3,899 with a technical pattern indicating a potential bullish breakout.
Significant institutional inflows have driven this move, pushing corporate ETH holdings to approximately 2.7 million tokens. This sustained accumulation has markedly reduced the available supply on exchanges, creating upward pressure on the ETH price.
On-chain analysis identifies a strong support level at $3,626. Current market indicators suggest the potential for further gains, with projections aiming for a rise towards $5,000 during the third quarter of 2025 if the current momentum persists.
Market analysts observe similarities between the current price action and patterns seen in May-June 2025, which culminated in a yearly high. This pattern recognition reinforces the positive market sentiment surrounding Ethereum’s potential.
The bullish outlook is further bolstered by the impact of ETF-related inflows and a resurgence in decentralized finance (DeFi) activity. In July alone, corporate ETH holdings experienced a substantial 127.7% increase, underscoring the strong institutional confidence driving the market forward.