Ethereum rockets 25%—dead cat bounce or the real deal?

ETH’s sudden surge has traders scrambling. Is this the long-awaited altcoin revival or just another bull trap for overeager bagholders?

Breaking down the rally: Spot ETF whispers, staking yields ticking up, and a suspiciously timed ’institutional adoption’ press release from a VC firm that probably just wants to dump its bags.

Meanwhile, Bitcoin maximalists are muttering about ’flippening’ again—because nothing gets clicks like tribal warfare in crypto.

One thing’s certain: Wall Street’s still clueless. The same analysts who called ETH ’obsolete’ last month are now frantically revising their price targets upward.

Are ETH whales silently setting the stage for a breakout?

Whale behavior has turned increasingly aggressive.

Large Holder Netflows ROSE 373.68% in seven days and 968.57% in the last 90 days. Institutions continue to buy. Abraxas Capital withdrew 49,644 ETH ($92M) from Binance and Kraken. 

Additionally, a wallet linked to Trump’s World Liberty acquired 1,587 ETH worth $3.5M. These signals confirm smart money confidence.

Therefore, if retail selling slows down, this accumulation could support further price growth and reduce downside risks in the NEAR term.

Source: IntoTheBlock

On top of that, Open Interest climbed 13.16% to $14.85 billion. This shows that traders are reopening positions and preparing for a major move.

Of course, higher Open Interest adds fuel to volatility. If Funding Rates remain steady and leverage stays balanced, a squeeze could favor bulls.

However, aggressive leverage without spot support could lead to a swift reversal.

Can a flip in Funding Rates revive bullish conviction?

Funding Rates have shifted to the positive zone after weeks of flat readings.

Binance ETH Funding Rate stood at 0.01%, which shows that bullish traders are slowly regaining control. Earlier negative rates reflected excessive bearish pressure. 

However, this reversal hints at growing buyer strength. Historically, this type of shift often appears before upward momentum.

Therefore, if rates continue rising, ethereum could build on its recent surge and break above major resistance zones.

Source: Santiment

Sentiment has started to shift in favor of buyers. Bullish accounts outnumbered bears 103 to 98 over the past week—a slim edge, but a notable change.

This slight edge may strengthen if Ethereum holds above $2,200. 

Positive sentiment, combined with accumulation and funding support, often leads to extended rallies. Traders should monitor crowd behavior closely.

It frequently foreshadows stronger market trends before they appear on the charts.

What key levels must ETH hold to sustain momentum?

Ethereum has surged above $2,225 and now eyes $2,800 as the next resistance. Bollinger Bands confirm volatility expansion, while stochastic RSI near 72 signals rising momentum. 

However, prices may face short-term resistance if overbought conditions develop. Still, the broader trend shows strength. Support remains solid at $1,793. 

Therefore, bulls must defend that level to protect their momentum. If they do, Ethereum could extend this recovery into a sustained uptrend in the coming days.

Source: TradingView

Whale accumulation, rising Open Interest, and a flip in Funding Rates suggest Ethereum is in breakout territory.

If ETH holds above $2,200 and retail buyers return, this could mark the beginning of a broader recovery, both for Ethereum and the wider market.