Ethereum News Today: Ethereum Breaks Bull Flag as 48.73% Rally in July 2025 Targets $4,870 Amid Golden Cross and ETF Inflows Solana Eyes $295 After Bull Channel Rebound

Ethereum (ETH) and Solana (SOL) are experiencing technical formations that signal potential upward momentum, with bull flags emerging on key price charts. Ethereum’s price recently confirmed a breakout from a bull flag pattern, a technical indicator often associated with continuation trends. This breakout followed a period of consolidation where the price tested the 0.786 Fibonacci extension level at $3,530 before surging past $4,100 on the weekly chart. Analysts highlight that the next immediate resistance lies at $4,100, with longer-term targets including the all-time high of $4,870 and the 1.618 Fibonacci level at $5,800 [1]. The move reflects broader market optimism, particularly as Ethereum’s price action aligns with improved institutional adoption and network upgrades like the Pectra roadmap [2].

Solana’s chart also shows early signs of a bull flag formation. On the 4-hour chart, the price rebounded from a key support level at $157 before entering a bullish channel. A subsequent pullback to the 0.618 Fibonacci level at $184 has positioned the asset for a potential rebound. Technical indicators suggest a near-term breakout is likely, especially as shorter-term Stochastic RSI levels have reached oversold territory [1]. If successful, the price could target $252, a previous resistance level, and eventually retest its all-time high of $295. The 2-week chart, however, shows a mixed candle pattern, with traders advised to monitor whether bullish momentum can close above $184 to validate the breakout [1].

The bull flag patterns for both assets are part of a broader trend in the cryptocurrency market. Ethereum’s 50-day moving average crossing above the 200-day line—a Golden Cross—on July 1, 2025, reinforced its technical strength. This event, combined with a bullish MACD crossover and RSI breaking key resistance, positions ETH for a potential short-term consolidation phase before resuming an upward trajectory. While overbought conditions (RSI at 78.85) could trigger temporary corrections, critical support remains intact at $3,576.71 [2]. For Solana, institutional activity and decentralized exchange volume have surged, though skepticism persists about its ability to sustain momentum against Ethereum’s institutional backing [3].

Market dynamics further underscore the interplay between Bitcoin and altcoins. Ethereum’s price closely tracks Bitcoin, with a historical correlation of 0.85. Bitcoin’s recent rally to $122,446 has indirectly benefited Ethereum, as both assets benefit from macroeconomic drivers such as expectations of Fed rate cuts and a weakening U.S. dollar [2]. Conversely, stablecoins like USDT exhibit anti-correlation with ETH, highlighting Ethereum’s role as a high-volatility asset in risk-on environments.

Institutional adoption has also fueled Ethereum’s rally. BlackRock’s spot Ether ETF recorded record inflows in July 2025, with 43 million shares traded on July 10 alone. This trend aligns with broader ETF adoption, which has reduced ETH’s circulating supply and intensified upward pressure [2]. Meanwhile, on-chain data shows Ethereum surpassing Solana in decentralized exchange volume, reinforcing its dominance in the DeFi ecosystem [2].

Despite the bullish signals, risks remain. Overbought indicators and macroeconomic uncertainties—such as geopolitical tensions or shifting fiscal policies—could temper the rally. Analysts like @LordOfAlts on X suggest a conservative $4,000 target for Ethereum, while others project more aggressive moves to $6,000–$8,000 by year-end [2]. For Solana, skepticism about its ability to maintain innovation without losing ground to larger competitors persists [3].

Sources:

[1] [Ethereum (ETH) and Solana (SOL): Bull Flags Signal Big Moves Ahead] [https://cryptodaily.co.uk/2025/07/ethereum-eth-and-solana-sol-bull-flags-signal-big-moves-ahead]

[2] [Ethereum Soars 48.73% in July 2025: Key Catalysts, Market Trends, and AI Forecast] [https://tickeron.com/blogs/ethereum-soars-48-73-in-july-2025-key-catalysts-market-trends-and-ai-forecast-11393/]

[3] [Solana Breaks $200: Bullish Momentum or Temporary Hype?] [https://cryptorank.io/news/feed/52254-solana-breaks-200-bullish-momentum-or-temporary-hype]