Ethereum Smashes Resistance – Is This the Launchpad for ETH’s Next Leg Up?

ETH bulls just bulldozed through a critical price barrier—now traders are scrambling to recalibrate their targets. The breakout comes amid surging gas fees (because Wall Street loves paying $50 for a $5 coffee) and whispers of institutional accumulation.

Key levels obliterated: Ethereum’s weekly close above $3,800 marks its highest since the 2022 carnage. Technicals scream bullish: RSI holding steady at 65, funding rates neutral despite the pump.

But here’s the kicker: This rally’s got fundamentals too. With L2 adoption hitting ATHs and the ETF circus coming to town, ETH might finally be shaking its ’beta asset’ reputation. Just don’t tell the Bitcoin maxis.

ETH long-term holders are now in profit

At the time of writing, ethereum was trading above its realized price of $1,900. The average ETH holder, especially those in accumulation addresses, was in profit.

This acts as a marker of long-term investor confidence. When price climbs above realized value, historically, it correlates with stronger conviction among holders and a shift in trader psychology.

Source: CryptoQuant

The chart reveals that accumulating wallets began acquiring below $1,900, and current prices confirm those positions. This threshold flip often signals renewed capital inflows, especially from institutions and swing traders aiming to capitalize on momentum.

Since this breakout occurs despite weak retail participation, it suggests that larger investors are driving the move.

Additionally, it reinforces that ETH’s rally is backed by strategic accumulation, rather than pure speculation.

Binance takes the lead

Recent inflow and outflow activity confirms Binance as the center of ETH trading. The exchange recorded the highest ETH transaction volume among all platforms, with outflows notably outpacing inflows during the price rise.

Source: CryptoQuant

The data illustrates that Binance users accumulated heavily during ETH’s dip, and are now realizing gains as price recovers above their average entry. Importantly, this dynamic doesn’t reflect market weakness – it shows strategic rebalancing on a platform known for high liquidity.

An example is Abraxas Capital’s aggressive accumulation of ETH via Binance recently.

Source: X

Ethereum’s price outlook

Ethereum’s surge to $2,600 aligns with the launch of the Pectra upgrade, which has likely added momentum to the recent bullish wave.

However, technical indicators show a short-term cooldown may follow. The RSI has breached the overbought threshold, now sitting above 80 – a level historically associated with pullbacks.

Source: TradingView

Meanwhile, the MACD supported upward momentum, suggesting any correction could be brief or shallow.

With ETH trading at $2,518 at press time, market structure remains bullish, but the next 24-48 hours could bring consolidation as traders digest both the rally and the upgrade news.