Ethereum Soars 65% – Sustainable Breakout or Just Another Crypto Sugar Rush?

Ethereum’s blistering 65% rally has traders buzzing—but seasoned pros know crypto pumps often come with hidden trapdoors. Let’s dissect whether this surge has legs or if it’s just another case of ’number go up’ theater.

The Technical Take: Breaking key resistance levels looks bullish on charts, but remember—TA in crypto often just confirms whatever narrative pays the most influencers.

Fundamentals Check: Layer-2 adoption is growing, but gas fees still spike like a Wall Street bonus pool during market mania. Real utility or just better speculation infrastructure?

The Bigger Picture: With institutional money sniffing around (again), this rally might outlast the usual hype cycle. Or not—after all, even ’smart money’ gets rekt chasing crypto moonshots.

One thing’s certain: whether this is the real deal or just another bull trap, someone’s getting rich while everyone else HODLs the bag. Welcome to decentralized finance, where the house always wins—it’s just harder to spot which whale is playing banker today.

Source: CryptoQuant

Whale Inflows accelerate

In just seven days, Ethereum’s Large Holders Netflow ROSE 22.8%, extending a massive 30-day increase of 1057.08% and a 90-day jump of 392.80%. 

This surge suggests sustained accumulation from institutional entities and long-term holders. 

Moreover, the timing of these inflows corresponds with Ethereum’s breakout above $2,600, confirming that deep-pocketed investors continue to bet on further upside.

Source: IntoTheBlock

While accumulation persists, ETH Exchange Reserves have increased by 3.93%, totaling $51.17B. Typically, rising reserves might indicate upcoming sell pressure as more ETH becomes available on exchanges. 

However, this rise could instead reflect rotational liquidity, where traders deposit ETH for derivatives exposure or to hedge positions.

ETH faces major hurdle at $2,714

Ethereum was trading around $2,663, just shy of a strong resistance band between $2,714 and $2,741. The Stochastic RSI sat above 79, indicating overbought conditions, while Bollinger Bands signal reduced volatility. 

A decisive close above $2,741 WOULD likely open the door to a breakout rally toward $3,000. However, failure to breach this zone could trigger a short-term retracement to $2,581. 

Therefore, ETH sits at a critical technical juncture that could dictate the near-term trajectory for both itself and the broader altcoin market.

Source: TradingView

Shorts get squeezed

Derivatives data confirms increasing bear capitulation.

On the 23rd of May, ETH liquidations showed short positions worth $17.88M being wiped out across exchanges. Binance and Bitfinex led the liquidations, while long positions only accounted for $12.56M. 

This continued squeeze has amplified ETH’s rally, especially as Open Interest and Whale Netflows both support the move.

Source: CoinGlass

Can ETH break $2,714 and trigger the next altcoin wave?

Ethereum appears well-positioned to break above the $2,714 resistance, backed by strong on-chain and derivatives metrics. 

The sharp rise in Whale Inflows, continued short liquidations, and a 41.6% surge in OI confirm solid bullish momentum. While reserves have risen slightly, this has not weakened the broader bullish setup. 

Therefore, a successful breakout above $2,714 would likely mark the beginning of a new altcoin rally, with ETH leading the charge.