Ethereum Gains 4% This Week Amid Mixed Signals

Ethereum has experienced a 4% gain this week, reaching a price point that has sparked both optimism and caution among analysts. The cryptocurrency's price has been hovering around $2,520, which is a critical level for determining its next move. The recent price action has failed to sustain above $2,600, leading to a technical pattern known as a "death cross," where the 50-week simple moving average (SMA) is about to cross below the 100-week SMA. Historically, this pattern has preceded significant declines, potentially sending Ethereum toward the $1,750 support level.

Despite the bearish technical indicators, there are several bullish catalysts that could drive Ethereum's price higher. Institutional interest in Ethereum remains strong, with U.S.-listed spot Ethereum ETFs logging $148.57 million in net inflows in a single day, the second-highest since February. This brings the 8-week inflow total to nearly $2 billion, indicating growing market confidence in Ethereum’s long-term value. Additionally, public companies such as SharpLink Gaming and BitMine have been accumulating Ethereum as a treasury asset, and Robinhood has launched tokenized US stocks on Arbitrum, an Ethereum Layer 2. These developments suggest increasing real-world use cases for Ethereum.

Derivatives markets also reflect optimism, with 80% of ETH call options for July expiry targeting prices above $3,000, and 30% aiming past $3,500. However, the price action remains undecided, and Ethereum's inability to break above $3,000, despite Bitcoin nearing new highs, suggests lingering skepticism. If macro factors turn risk-off, Ethereum could face increased pressure from both retail and leveraged traders.

On the bullish side, Ethereum is currently testing the base of a rising parallel channel near $2,474. On lower timeframes, the asset is printing higher highs and higher lows—a bullish structure that remains intact as long as $2,474 holds. Additionally, a multi-year symmetrical pennant is developing, with Ethereum now in wave D of the pattern. If ETH breaks above the $2,855 neckline of its inverse head and shoulders formation, it could unleash strong upside momentum, potentially reaching $3,500–$6,000. For bulls, $2,474 is the line in the sand. A break above $2,855 would be a big win. Until then, patience and discipline are key.