Ethereum (ETH), the leading altcoin, is positioned for a robust third quarter of 2025, propelled by renewed bullish sentiment across the cryptocurrency market. The ETH/BTC ratio has shown signs of recovery, indicating Ethereum's growing strength against Bitcoin (BTC) as the market leader continues its upward trajectory.
Ethereum has cemented its status as a "Wall Street darling," experiencing nine consecutive weeks of positive spot ETF inflows. This sustained institutional demand underscores a growing recognition of Ethereum not merely as a tech stock, but as a foundational asset that powers the burgeoning decentralized finance (DeFi) ecosystem and offers attractive returns through staking. The increased institutional and retail interest has been a significant catalyst for ETH's recent price appreciation. However, the psychological $3,000 level continues to pose a formidable psychological and technical barrier.
With Bitcoin firmly in price discovery mode, having recently breached new all-time highs, market observers anticipate that Ethereum will soon follow suit, pushing higher into uncharted territory.
Ethereum Traders: Mind the Gap
From a technical perspective, the weekly chart for Ethereum indicates intense bullishness, with the asset blasting past a bearish order block around the $2,800 mark. This decisive move highlights strong buyer eagerness. However, this rapid ascent has left a "gap to the south" on the weekly chart, suggesting that swing traders might want to exercise caution. A retest of the $2,800 region as support could be a healthy consolidation before the next major rally.
Examining the 12-hour chart further reinforces this possibility. Ethereum's swift rally in July meant it did not linger long at the $2,800 resistance zone, increasing the likelihood of a minor dip back to this demand area before its next leg up.
Momentum indicators currently paint a bullish picture. The Relative Strength Index (RSI) stands at 77, signaling strong buying momentum. While this indicates a robust uptrend, traders should remain vigilant for the potential development of a bearish divergence in the coming days, which could serve as a warning sign. The Chaikin Money Flow (CMF) is at +0.23, a value well above +0.05, confirming substantial capital inflow into the market and a dominant buying pressure, which could aid a swift breach of the psychological $3,000 resistance.
The 1-month Liquidation Heatmap reveals dense liquidity clusters stacked above the $3,000 mark. These "magnetic levels" are known to attract price action, suggesting Ethereum is poised to chase them down. In contrast, the liquidity band at $2,880 appears faint, indicating it might only briefly pull prices lower, with the real impetus for movement residing to the north.
With Bitcoin's ongoing price discovery and Ethereum exhibiting strength across various pairs and metrics, further upside for ETH looks highly probable. Nevertheless, a return to the $2,800 support level remains a distinct possibility. Traders should prepare for both scenarios: either a direct continuation towards $3,200 or a clean retest of support before a more significant push higher.
July 2025, Cryptoniteuae