Ethereum News Today: Ethereum Surpasses $3,800 as Bull Flag Targets $5,673.80

Ethereum’s price action and on-chain activity are sparking renewed bullish optimism among traders and analysts. The cryptocurrency has broken above the $3,800 level, completing a classic bull flag pattern that signals potential for a move toward $5,673.80 [1]. This technical setup, highlighted by Cas Abbe on X, shows ETH surging from below $2,500 to over $3,800 in early July, followed by consolidation within a downward-sloping channel [1]. A confirmed daily close above $3,800 would validate the pattern, with the flagpole height projecting a strong upside target. Recent trading volume of 126.74K ETH underscores the strength of the breakout, reinforcing the likelihood of a continuation [1].

In addition to favorable technicals, whale activity is drawing attention. A single whale reportedly purchased nearly 147,590 ETH, valued at $544 million, through centralized exchanges and over-the-counter channels [1]. This level of accumulation typically precedes major price moves, particularly in a market where supply on exchanges is tightening due to burning and staking mechanisms. The move suggests growing institutional confidence in Ethereum’s long-term value proposition.

On-chain metrics further support the bullish narrative. Ethereum’s weekly transactions reached an all-time high of 11.9 million, signaling rising demand and increased user engagement [1]. Daily on-chain activity also hit a peak of 1.92 million, its highest in 18 months. Such growth in network activity reflects stronger fundamentals and greater market participation.

The broader market context is also aligning with bullish expectations. Karman Asghar noted that Bitcoin’s dominance has stalled at 61.69%, a potential sign that capital is beginning to rotate toward altcoins [1]. If this trend continues, Ethereum—being the most liquid and widely adopted altcoin—could see a significant portion of inflows, amplifying its upside potential.

Liquidity conditions also appear to favor a bullish scenario. According to Coinglass, there is intense liquidity near $3,900, with over $2.2 billion in potential liquidations [1]. Such clusters often attract price action as market makers attempt to resolve imbalances, increasing the chances of a directional move.

While the technical and on-chain signals are strong, it is important to distinguish between actual data and analyst forecasts. The projected price target of $5,673.80 is based on the bull flag pattern analysis [1], not on any speculative prediction. Similarly, the suggestion that Bitcoin’s dominance stalling may signal an altcoin season is based on observed market behavior, not a guaranteed outcome [1].

Overall, Ethereum is displaying a combination of strong technical patterns, robust on-chain activity, and institutional accumulation that together form a compelling case for a significant price move. If the current momentum holds, the next key level to watch is $5,673.80, with traders and analysts closely monitoring the unfolding developments.

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Source:

[1] Ethereum Eyes Monster Move as Whales Load Big, Bull Flag Points to $5,6K

https://coinmarketcap.com/community/articles/68948aa88e030a50e32ca14c/