Ethereum News Today: Injective Surges 7% as Harmonic Pattern Signals 27% Upside Potential

Injective (INJ) has seen renewed interest as its price surged 7% on July 26, 2025, extending its monthly gains to 26%. This upward momentum coincides with broader bullish sentiment in the cryptocurrency market, particularly Ethereum (ETH), which climbed over 3% on the same day. Analysts are highlighting a key harmonic pattern on INJ’s chart, suggesting potential for further gains if the technical setup holds [1].

The DeFi token’s price action forms a bearish ABCD harmonic pattern, a structure often used to identify trend continuations or reversals near Fibonacci levels. The pattern began in April when INJ rallied from $6.30 (point A) to $13.80 (point B) by early June. A subsequent pullback brought the price to $8.98 (point C) by late June, followed by a resurgence that now positions the token near $14.23. This price has recently bounced from the 200-day moving average at $12.77, a critical support level that has historically provided a floor for the asset [1].

The ABCD pattern’s final leg, from point C to D, is still in progress. If the current trajectory continues, the pattern suggests a potential target at the 1.41 Fibonacci extension level of approximately $18.10. This would represent a 27% increase from the current price, assuming the token maintains buying momentum above the 200-day moving average. Minor pullbacks may occur during the move, but the overall structure remains bullish as long as INJ stays above this critical support level [1].

The harmonic pattern’s validity hinges on several factors. First, the price must hold above the 200-day moving average to confirm the continuation. Second, sustained buying pressure is necessary to reach the projected $18.10 target. While the pattern signals optimism, traders should remain cautious, as harmonic formations are probabilistic and not guarantees of future performance. The analysis is based on historical price data and Fibonacci retracement levels, without incorporating on-chain metrics or fundamental factors such as network upgrades or institutional adoption [1].

The market environment also plays a role. INJ’s rally aligns with a broader risk-on sentiment in crypto, driven by Ethereum’s recent gains and improving market conditions after a correction. However, volatility remains inherent to the sector, and external macroeconomic factors—such as regulatory developments or shifts in investor risk appetite—could influence the token’s trajectory. Investors are advised to conduct independent research and consider their risk tolerance before acting on technical signals [1].

Source: [1] ["Injective (INJ) To Soar Further? Key Harmonic Pattern Signals Potential Upside Move"](https://coinmarketcap.com/community/articles/68847ae714ef1463d5477848/)