Ethereum News Today: Ethereum Surges 100% Past $4,100 on Institutional Demand

Ethereum has decisively broken through the critical $4,100 resistance level, signaling a potential bullish surge toward $7,200. This movement is driven by strong institutional demand and technical momentum. Significant ETF inflows and large-scale whale purchases underscore growing confidence among institutional investors, reinforcing Ethereum’s upward trajectory.

According to sources, the weekly breakout from a broadening wedge pattern confirms a robust mid-term rally, with key analysts projecting sustained gains. Ethereum’s weekly chart reveals a classic right-angled descending broadening wedge pattern, characterized by a horizontal support line and a descending resistance line. The recent breakout above this resistance marks a significant bullish development. This technical pattern often precedes strong upward moves, suggesting that Ethereum is poised for a sustained rally if current trends persist.

Following the breakout, trading volumes have surged, indicating heightened buyer interest. On-chain metrics reveal a consistent decline in Ethereum reserves on exchanges, signaling accumulation by investors rather than selling pressure. These factors collectively point to a robust foundation for continued price appreciation.

Institutional demand for Ethereum has surged, with U.S. spot ETH ETFs recording a remarkable $727 million inflow in a single day during mid-July. This influx of professional capital is a strong indicator of confidence in Ethereum’s long-term prospects. An analyst applies Elliott Wave theory to suggest that Ethereum is currently in Wave V, the final bullish phase of the cycle, which could propel prices toward $10,000. However, the immediate focus remains on consolidating gains around the $6,700 to $7,200 range following the confirmed wedge breakout.

Ethereum’s expanding network activity, particularly through Layer 2 scaling solutions like Arbitrum and Optimism, is bolstering demand and usability. This ecosystem growth complements the price action, providing fundamental support that reinforces bullish sentiment. As Layer 2 adoption increases, Ethereum’s transaction throughput and cost efficiency improve, attracting further investor interest and strengthening its market position.

Ethereum’s recent breakout above $4,100, supported by strong institutional inflows, whale accumulation, and favorable technical patterns, signals a promising bullish phase. The broadening wedge breakout and Elliott Wave analysis suggest potential targets between $6,700 and $7,200 in the near to mid-term. Additionally, the growth of Layer 2 solutions enhances Ethereum’s fundamental appeal, underpinning sustained demand. Investors should monitor these developments closely as Ethereum continues to navigate this critical phase of its market cycle.