Ethereum News Today: Ethereum Surpasses $3,600 Resistance as Bullish Momentum Builds

Ethereum has rebounded above the $3,600 level, reigniting discussions among traders and analysts about the potential for a breakout beyond the $4,000 resistance. This resurgence came after a sharp two-day recovery, with Ethereum briefly holding near $3,634.40 following the rebound [3]. The price action reflects renewed bullish momentum, as the asset has historically faced resistance in the $3,550–$3,600 range. Analysts have noted that a sustained move above $3,600 could signal the beginning of a new upward phase, with the next key target at $3,800 and potentially $4,000 if volume remains strong [4].

Ethereum’s market dominance has also increased to 18% of the total crypto market cap, up from 16% in the previous month [6]. This rise in dominance may redirect capital from smaller tokens, creating favorable conditions for ETH-based trading pairs such as ETH/BTC or ETH/USDT. On-chain data further supports the positive momentum, with transaction activity and active addresses showing an uptick, often signaling the start of a sustained rally [5].

Analyst Benjamin Cowen has offered a long-term outlook, suggesting Ethereum could hit new all-time highs between $5,300 and $7,500 by the end of 2025, based on a harmonic “butterfly effect” pattern [1]. Cowen expects short-term weakness to continue through September and October, mirroring historical cycle behavior. He noted that Ethereum’s return to its bull market support band in April 2024, a first since 2020, may present a favorable buying opportunity. According to Cowen, such behavior often aligns with ETH bottoming in relation to Bitcoin.

Cowen’s analysis draws from past cycles, highlighting that Ethereum’s return to its regression band in 2016 and 2019 marked major bottom formations, followed by aggressive rallies to new highs. He anticipates a similar path: a period of August–September weakness, a higher low, and then a breakout to fresh cycle highs [1]. He also draws a comparison between ETH’s current structure and Tesla’s 2023 performance, suggesting that both assets formed macro higher lows in April, rallied into mid-July, and then pulled back. Tesla’s December breakout, he argues, could serve as a model for Ethereum’s potential year-end rally [1].

Key levels to watch include support around the $2,400–$2,700 band and resistance at the previous all-time high of $4,800 [1]. If Ethereum breaks above $3,800–$3,900 before any September correction, the higher end of the price target becomes more likely. Conversely, a failure to break resistance soon could keep it near the lower end of the projected range.

The recent price action also coincides with broader market developments. Bitcoin has shown signs of stalling, while Ethereum, along with XRP and Dogecoin, has continued to climb [4]. Crypto trader Teddy Cleps noted that Ethereum is breaking out of its downtrend channel, indicating a potential reversal in the short term [4]. Meanwhile, Ethereum’s beta to Bitcoin remains high at approximately 1.2, meaning it tends to amplify Bitcoin’s movements [5].

Market participants are also keeping a close eye on Ethereum’s performance in relation to macroeconomic factors. The upcoming U.S. interest rate decisions could introduce volatility, and a hawkish policy stance could place downward pressure on crypto assets. Position sizing and risk management remain crucial for traders navigating this environment. In terms of sentiment, the fear and greed index has shifted from neutral to greedy, reflecting a more optimistic outlook among investors [5].

As Ethereum continues to consolidate above $3,600, the next few days will be critical in determining whether this recovery is a short-term bounce or the start of a more sustained rally. If the price holds above the key resistance level, it could invalidate bearish patterns and open the door for further gains. Traders are advised to monitor key support levels, including $3,500 and $3,400, as well as volume activity on major exchanges, which have seen a significant increase in the past 24 hours [3].

Ethereum’s ability to reclaim and hold key price levels has historically influenced broader market sentiment. With ETF inflows and increased institutional interest providing additional support, the path to $4,000 appears more viable, although not without risks. Analysts remain cautious, emphasizing the importance of understanding ETH’s tendency to retest support zones and the need for flexibility in trading strategies as key macro signals evolve [1].

Source:

[1] Ethereum Price Prediction: ETH Price in 2025, 2026, 2027 (https://coindcx.com/blog/price-predictions/ethereum-price-weekly/)

[2] Ethereum News Today: Ethereum Holds Key Support at ... (https://www.ainvest.com/news/ethereum-news-today-ethereum-holds-key-support-3-430-bullish-technical-signals-2508/)

[3] Ethereum (ETH) Price Prediction for August 6 (https://coinedition.com/ethereum-eth-price-prediction-for-august-6-2025/)

[4] Bitcoin Stalls While Ethereum, XRP, Dogecoin Continue To ... (https://www.benzinga.com/crypto/cryptocurrency/25/08/46853757/bitcoin-stalls-while-ethereum-xrp-dogecoin-continue-to-climb)

[5] Ethereum (ETH) Surges Past $3600: Key Resistance Level ... (https://blockchain.news/flashnews/ethereum-eth-surges-past-3-600-key-resistance-level-reclaimed-for-crypto-traders)

[6] Ethereum News Today: Ethereum Surpasses $3538 as RSI ... (https://www.ainvest.com/news/ethereum-news-today-ethereum-surpasses-3-538-rsi-signals-bounce-3-248-support-2508/)

[7] Ethereum Reclaims $3,600: When Will The $4,000 Resistance Break? (https://finance.yahoo.com/markets/crypto/most-active/)