Ethereum Teases $3K Breakout as Dollar Stumbles

Green shoots for ETH as weakening dollar fuels crypto rally. Traders eye psychological $3,000 resistance—last seen before the Fed went full hawk.

Technical setup shows bullish divergence on weekly charts. Liquidity pools cluster around $2,950 like Wall Street analysts chasing momentum.

Risk-on sentiment returns... just don’t mention the $2B in leveraged long positions waiting to get liquidated.

Ethereum is showing signs of a major bullish breakout as macroeconomic and on-chain trends align with historical market behavior. Trading at $2,593.20, ethereum has climbed 8.16% over the past week. It has witnessed a 24-hour trading volume of $14.76 billion, a 3.58% increase in market cap, and has reclaimed support above $2,580. The bullish move has influenced investors and traders to pay heed to Ethereum’s price moves.

Will the U.S. Dollar Index (DXY) Push ETH Price?

According to a post by analyst, who recently posted a convincing chart-based analysis, Ethereum may be poised for a significant upward move. He points out that the inverse correlation between ETH and the DXY has been holding strong. And that we could witness a parabolic move in 2025, as historically seen in 2020 and 2022.

In the comparative chart shared by him, DXY tops (red line) historically align with Ethereum bottoms (blue line). With the DXY topping out in late 2023 and now showing aggressive weakness, ETH appears to be heading upward from a higher low, which is typically a bullish accumulation signal.

Ethereum (ETH) Price Analysis:

As seen from the 4-hour ETH price chart, the altcoin has been consolidating with its key resistance at $2,735.89 and psychological resistance at $3,000. The bullish move could be amplified by strong daily volumes, ETF inflows, and institutional push like that of BlackRock. Contrarily, ETH could find support at $2,479.50, forming a higher low pattern. 

While history may not repeat perfectly, it appears to rhyme. Ethereum’s positioning in this macro cycle, combined with dollar weakness and institutional interest, we can expect the $3,000 level to fall into place.

Also read our Ethereum (ETH) Price Prediction 2025, 2026-2030!

FAQs

Ethereum’s rally is being driven by a combination of macroeconomic factors, notably the falling DXY, institutional inflows, strong trading volumes, and technical chart patterns.

Ethereum (ETH) price today is at $2,593.20 with an intraday gain of 3.64%.

Ethereum faces short-term resistance at $2,735.89, with major resistance NEAR $3,000.