Ethereum Surges 37% to $3,014.95, Breaking $3,000 Mark

Ethereum has surged past the $3,000 mark, signaling a strong bullish trend in the market. This milestone comes after a period of sideways movement and low volatility, with the cryptocurrency reclaiming the $2,200 support level. The current market structure suggests that every resistance level is fueling further growth, with $4,000 in view and a longer-term target set near $10,000.

Ethereum's climb above $3,000 followed a breakout from the $1,500–$2,200 accumulation range. The higher low structure formed over recent months has supported this upward move. According to an analysis, Ethereum is on a mission, with resistance levels turning into price catalysts. At the time of writing, Ethereum was trading around $3,014.95.

The market responded with increased trading volume, reflecting growing investor interest and strong market sentiment. The market cap reached $363.95 billion, indicating renewed confidence across the crypto sector. The volume-to-market cap ratio of 10.97% shows active trading in both spot and derivatives. The fully diluted valuation equals the circulating supply’s market cap, which remains at 120.71 million ETH. No major changes in issuance have occurred, keeping supply stable as demand rises.

The $4,000 resistance zone is now being closely watched as the next major level before longer-term targets come into play. The rally has been driven by a combination of factors, including increased trading activity and a massive short squeeze. The liquidation of over $217 million in ethereum short positions in the last 24 hours indicates a shift in market sentiment, with analysts suggesting that the market is now more bullish on ethereum, with a higher chance of further price increases.

The price action comes as US spot ethereum ETFs recorded their second-highest daily inflows, at $383 million, since their inception last year. This influx of capital, combined with increased on-chain activity, has contributed to ethereum's price surge. Ethereum's network has been leading in on-chain net flows across all major blockchains on a three-month and year-to-date scale. This increased activity has been driven by a rise in decentralized exchange trading, with Uniswap V3 consistently ranking as a top venue for trading in the past month. The increased economic activity on the ethereum network has led to a corresponding increase in its price, as more investors and traders flock to the platform.

The rally has also been supported by institutional flows, with crypto treasury companies raising capital to scoop up loads of ethereum. The Ethereum Foundation recently announced the sale of $25.7 million worth of tokens to SharpLink Gaming, which counts ethereum cofounder Joseph Lubin as its board’s chairman. This move, along with the sustained nature of institutional flows, has established a higher price floor for ethereum, supported by fundamental demand rather than speculative positioning.

Despite ethereum's recent gains, it is still roughly 40% away from its record price set in 2021. However, analysts suggest that ethereum is quietly reclaiming center stage, with on-chain capital inflows, institutional positioning, and derivative traders favoring ethereum volume. This may be the early innings of a sustained ethereum-led regime, especially if macro or regulatory catalysts further tilt the risk-reward calculus.

The price action has also led to a shift in market sentiment, with ethereum futures trading volume reaching parity with BTC, at roughly $44 billion. This suggests a more sustained recalibration of market attention toward ethereum. Analysts suggest that ethereum has a good chance of rising to $4,000 if momentum builds, with the cryptocurrency currently sitting in the middle of a parallel channel. The recent rally has been driven by a combination of factors, including increased trading activity, a massive short squeeze, and sustained institutional flows. As ethereum continues to gain momentum, it remains to be seen whether it can sustain its recent gains and reach the $4,000 mark.