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Ethereum is currently approaching a pivotal phase dubbed the “Banana Zone,” a term historically linked to significant bullish cycles in its four-year price structure. As of early August 2025, the cryptocurrency is showing signs of a potential parabolic surge, with analysts projecting price targets between $7,000 and $8,000 by the end of the year. The movement is supported by increasing ETF inflows, strong technical indicators, and growing institutional backing, all of which are contributing to Ethereum’s upward trajectory[1].
The price action suggests a widening wedge pattern, a technical formation often associated with strong trend continuation. A decisive break above the $3,880 level is seen as a critical threshold for Ethereum, potentially propelling the asset toward $4,000–$4,120 in the short term. This breakout is being fueled by the accumulation of institutional reserves from over 65 entities, with reserves valued above $10 billion[1]. Analyst Marcus Corvinus has noted that the current price movement aligns with historical peak phases, indicating Ethereum is “climbing into” a period that could lead to a parabolic rise[1].
Despite mixed short-term indicators—hourly RSI below 50 and MACD momentum slowing—the weekly chart remains bullish, characterized by a supertrend and positive Chaikin Money Flow since early 2024. These factors suggest that Ethereum is in a phase of strong on-chain strength and investor confidence, with liquidity being bolstered by ETF inflows. The growing participation of institutional players is also enhancing market stability, reinforcing Ethereum’s capacity to sustain higher price levels[1].
The market structure further indicates that Ethereum is forming higher lows, a sign of consistent bullish momentum as it approaches the $4,000 resistance level. This pattern supports the view that the current cycle is setting the stage for a major breakout, especially as it mirrors the conditions seen in 2017 and 2021. Experts predict that after a potential corrective phase, Ethereum could see a significant upward move, especially if the wedge pattern continues to widen[1].
The role of ETF inflows in Ethereum’s momentum cannot be overstated. As investor interest grows, so too does the liquidity available to support price advances. This is particularly relevant as the market tests key resistance levels, with the $3,880 level being a focal point. A successful breakout would not only confirm the strength of the current bull case but also align with the projected four-year cycle dynamics[1].
Looking ahead, the long-term outlook for Ethereum remains robust. Based on the current price structure and institutional support, the asset is positioned for a potential parabolic rise toward $7,000–$8,000 by 2025. This target range is informed by a combination of historical price cycles, technical analysis, and on-chain activity, all of which point to a continuation of bullish momentum. Investors are advised to closely monitor key resistance levels and institutional activity to better understand the trajectory of the asset[1].
Source: [1]Ethereum Nears Key Resistance Amid Bullish Patterns and Possible 2025 Targets Between $7,000 and $8,000 (https://en.coinotag.com/ethereum-nears-key-resistance-amid-bullish-patterns-and-possible-2025-targets-between-7000-and-8000/)

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