Ethereum’s Bullish Surge: ETH Price Target Nears as Momentum Builds

Ethereum's chart is painting a classic bullish pattern—and traders are leaning in hard. The setup suggests ETH could be gearing up for a major move, with technicals aligning for a potential breakout.

Why this matters: When ETH gets momentum, it doesn't just climb—it drags the entire altcoin market along for the ride. The last time this pattern appeared, retail traders were still calling it 'magic internet money.'

Key levels to watch: All eyes are on that price target, though let's be real—crypto 'targets' are just educated guesses dressed up as math. Meanwhile, Wall Street is still trying to figure out how to short it without getting burned.

Bottom line: This isn't just another pump. The fundamentals—DeFi, institutional adoption, that ever-shrinking supply—actually justify the hype this time. Probably.

Inverted head-and-shoulders pattern signals bullish intent

Technical analysis reveals that Ethereum’s price action has been shaping a textbook inverted head-and-shoulders pattern on the daily chart. This formation, commonly associated with bullish reversals, stretches from early March through mid-June and features higher lows with consistent resistance at the neckline.

To confirm a breakout, ETH must close above the neckline at $2,824 with strong momentum. If this occurs, Fibonacci extension levels suggest Ethereum could aim for $2,933 and even $3,237 in the short term.

Traders and analysts are now closely monitoring this range as a potential inflection point for the asset.

Wallet activity shows cautious optimism

While price patterns are encouraging, on-chain wallet behavior tells a more nuanced story. Over the last 30 days, holdings in long-term wallets remained relatively flat, indicating neutrality among large investors. This group typically holds significant influence over price trends during sustained market cycles.

Mid-sized investors, categorized under investor-level wallets, increased their holdings by 6.46%, signaling moderate confidence in Ethereum’s potential upside. Meanwhile, retail wallet growth stayed nearly unchanged, showing a cautious stance among smaller participants.

Together, these trends suggest a supply standoff—where neither accumulation nor distribution is dominant. This balance might delay a decisive MOVE until external catalysts or clear market shifts emerge.

Short-term profits meet long-term hesitation

Ethereum’s MVRV (Market Value to Realized Value) Ratio offers another LAYER of insight into market sentiment. At the time of writing, ETH’s MVRV Ratio stood at 23.05%, indicating that short-term holders are in profit.

However, a deeper look into the MVRV Long/Short Difference paints a less optimistic picture. Currently sitting at -7.71%, this metric suggests that long-term holders are still underwater relative to their average buy-in prices.

This divergence creates a psychological split in the market. While short-term holders may be tempted to take profits, long-term investors may remain inactive until a strong recovery brings their holdings into profit. Until both groups converge in sentiment, Ethereum may continue to consolidate within its current range.

Network slowdown could challenge bullish case

A notable concern for Ethereum is the recent drop in network activity. Total gas used fell by 16%, from over 65 billion to around 55 billion, ending a long period of sustained on-chain engagement.

This drop could be due to increased efficiency following recent network upgrades, or it may reflect weakening demand. Either way, a decline in gas consumption often raises questions about underlying utility and user activity—key pillars for long-term valuation.

Should gas usage continue to drop in tandem with address activity, Ethereum’s bullish outlook might lose strength despite a favorable chart setup.

New users show up, but engagement remains soft

Adding to the mixed signals is the divergence between new wallet creation and active address usage. Over the past week, Ethereum saw a 9.77% increase in new wallet creation. However, daily active addresses fell by 1.35%, suggesting that while curiosity is rising, conviction remains weak.

This pattern is often seen during early phases of recovery—when interest returns before consistent participation. For ETH to sustain upward momentum, both metrics need to rise together, confirming that new users are actively engaging with the network.

Without this alignment, any breakout attempt may lose steam quickly.

Will Ethereum cross $2,824 or remain in limbo?

Ethereum’s setup offers promise with strong technical support and a clear breakout pattern in place. Yet, the underlying fundamentals remain conflicted. The falling gas usage, soft retail participation, and long-term holder losses add complexity to the price forecast.

The $2,824 resistance level now serves as a critical trigger. A close above this price, supported by rising engagement and on-chain confirmation, could open the door to the $3,237 target.

Conversely, failure to break through this resistance may keep ETH stuck in a sideways range, waiting for renewed confidence across both investor groups and network participants.

Final thoughts

Ethereum’s path forward is paved with potential—but also uncertainty. On the one hand, strong technical indicators suggest a rally could be near. On the other, sluggish network activity and hesitation among key investor groups may delay that breakout.

For traders and investors, the next few weeks could prove pivotal. Watching for confirmation above $2,824 and signs of improved on-chain metrics will be essential for gauging Ethereum’s true breakout potential.

Until then, ETH continues to move cautiously toward its $3,237 target, with momentum building—but not yet confirmed.