Ethereum News Today: Ethereum Surges 35% in Four Weeks Driven by Technical Indicators and Spot Market Inflow

Ethereum has experienced a significant surge, gaining 35% over the past four weeks. This upward trend has been driven by a combination of factors, including a fractal-based rally pattern, strong technical indicators, and a notable $11 million inflow into the spot market. Analysts are optimistic about further gains if Ethereum can break through the resistance level of 0.02938 BTC.

Market analyst and founder of Alphractal, Joao Wedson, identified a recurring pattern where Ethereum tends to rally 28 days after Bitcoin reaches a new all-time high. This pattern is likely driven by liquidity rotation from profits realized on Bitcoin. Historical data supports this observation, as in both 2017 and 2021, Ethereum saw explosive gains following Bitcoin's all-time highs. In the 2017 cycle, Ethereum surged over 100% while Bitcoin lost 30%. In another phase, Ethereum jumped 80% as Bitcoin dropped 20%.

Based on this pattern, the countdown for Ethereum's rally has likely begun. Bitcoin hit a new all-time high of $123,000 on the 14th of July, before declining, potentially setting the stage for Ethereum’s breakout. The ETH/BTC chart is forming new higher highs, confirming strong liquidity inflow into Ethereum and outflow from Bitcoin. As of the latest data, the chart shows a rally approaching a resistance level at $0.02938. A rejection in this zone could trigger a pullback into the red-shaded demand area, potentially causing Ethereum to decline toward the $0.02605–$0.02540 range.

However, technical indicators continue to signal a strong bullish trend. The Aroon Indicator, which measures trend strength and direction, showed the Aroon Up (orange) hitting 100%, while the Aroon Down (blue) sat at just 7.18%—a clear confirmation of bullish momentum. Additionally, the Moving Average Ribbon indicates a bullish signal, with the short-term 20 and 50 MAs crossing above the 100-day MA. A more definitive bullish confirmation would be a crossover above the 200-day MA, which, if it occurs, would result in significant losses for sellers at current resistance levels.

Spot market investors have returned after two consecutive days of selling, with a notable $11 million inflow into Ethereum over the past 24 hours. Much of the purchased Ethereum has moved into private wallets, signaling long-term conviction and a shift in market posture. If this trend continues, the added liquidity could fuel further momentum, setting Ethereum on track to establish new highs in the days ahead.