Ethereum has been on a tear this past week, jumping more than 19% and smashing through the $4,000 resistance for the first time since last December. The rally pushed ETH as high as $4,329 before settling around $4,303 at the time of writing leaving it only 12% shy of a new all-time high.
With year-to-date gains now over 190%, traders are watching closely to see whether Ethereum can keep the momentum going or if a correction is around the corner.
Bullish Chart Breakout
On the weekly chart, Ethereum has confirmed a breakout from a multi-year megaphone pattern a setup marked by gradually higher highs and lower lows. Last week’s decisive move above the pattern’s upper trendline has strengthened the bullish outlook.
ETH is now trading comfortably above all its major moving averages, with the 50-day MA well above the 200-day MA, confirming a strong long-term uptrend. Momentum indicators like the MACD are pointing up, with widening histogram bars signaling continued buying pressure.
If this trend holds, analysts suggest ETH could aim for $7,000 in the coming months about 62% higher than current levels.
Key Price Zones to Watch
Liquidation data from CoinGlass shows dense clusters between $4,200–$4,300 and $4,400–$4,500, which could act as short-term price magnets. On the flip side, significant downside liquidation levels sit between $4,100–$4,150, which could accelerate a drop if selling pressure builds.
Spot Ethereum ETFs See Record Inflows
One of the biggest bullish catalysts? Spot Ethereum ETFs just had their largest single-day net inflow ever $1 billion.
After two weeks of muted activity, this surge signals a sharp shift in investor sentiment. Sustained inflows could draw more retail buyers and add fuel to Ethereum’s rally.
Profit-Taking May Trigger a Pullback
While momentum is strong, some early investors are starting to lock in gains. Glassnode data shows short-term holders selling more aggressively than long-term holders a common sign that a short-term pullback could be brewing.
Such dips are normal after multi-month highs and could set the stage for Ethereum’s next leg upward.
Macro Events Could Steer the Market
This week brings a packed U.S. economic calendar:
- Tuesday: July CPI report
- Thursday: PPI
- Friday: Retail sales & consumer sentiment
If the inflation data comes in soft, it could boost the odds of a Fed rate cut, increasing liquidity and making risk assets like ETH more attractive.
Bitcoin’s Role in ETH’s Next Move
Bitcoin’s surge above $122K over the weekend wiped out $100M in shorts, but it also left behind a CME futures gap near $117,200. BTC has a history of retracing to “fill” these gaps, so a move back toward that level could trigger consolidation across the market including in Ethereum.
Bottom line: Ethereum is in a strong technical position, backed by record ETF inflows and a bullish chart breakout. But with profit-taking on the rise and macro events ahead, the next few days will be critical in deciding whether ETH pushes toward a new all-time high or cools off first.
