• Ethereum has decisively broken through the critical $4,100 resistance level, signaling a potential bullish surge toward $7,200 driven by strong institutional demand and technical momentum.

• Significant ETF inflows and large-scale whale purchases underscore growing confidence among institutional investors, reinforcing Ethereum’s upward trajectory.

• According to COINOTAG sources, the weekly breakout from a broadening wedge pattern confirms a robust mid-term rally, with key analysts projecting sustained gains.

Ethereum breaks $4,100 resistance, fueled by ETF inflows and whale buys, setting the stage for a bullish rally toward $7,200 amid strong technical signals.

Ethereum’s Breakout from Broadening Wedge Signals Strong Bullish Momentum

Ethereum’s weekly chart reveals a classic right-angled descending broadening wedge pattern, characterized by a horizontal support line and a descending resistance line. The recent breakout above this resistance marks a significant bullish development. Titan of Crypto’s analysis highlights that this breakout validates a positive market sentiment and supports a projected price target of $7,200 within 2025. This technical pattern often precedes strong upward moves, suggesting that Ethereum is poised for a sustained rally if current trends persist.

Volume Surge and On-Chain Data Confirm Accumulation Phase

Following the breakout, trading volumes have surged, indicating heightened buyer interest. On-chain metrics reveal a consistent decline in Ethereum reserves on exchanges, signaling accumulation by investors rather than selling pressure. CryptoKnee’s observations on TradingView further reinforce this outlook, noting that Ethereum is trading above critical moving averages and within a well-defined upward channel. These factors collectively point to a robust foundation for continued price appreciation.

Institutional Inflows and Elliott Wave Analysis Support Upside Potential

Institutional demand for Ethereum has surged, with U.S. spot ETH ETFs recording a remarkable $727 million inflow in a single day during mid-July. This influx of professional capital is a strong indicator of confidence in Ethereum’s long-term prospects. Dutch analyst Gert Van Lagen applies Elliott Wave theory to suggest that Ethereum is currently in Wave V, the final bullish phase of the cycle, which could propel prices toward $10,000. However, the immediate focus remains on consolidating gains around the $6,700 to $7,200 range following the confirmed wedge breakout.

Layer 2 Ecosystem Growth Enhances Ethereum’s Market Position

Ethereum’s expanding network activity, particularly through Layer 2 scaling solutions like Arbitrum and Optimism, is bolstering demand and usability. This ecosystem growth complements the price action, providing fundamental support that reinforces bullish sentiment. As Layer 2 adoption increases, Ethereum’s transaction throughput and cost efficiency improve, attracting further investor interest and strengthening its market position.

Conclusion

Ethereum’s recent breakout above $4,100, supported by strong institutional inflows, whale accumulation, and favorable technical patterns, signals a promising bullish phase. The broadening wedge breakout and Elliott Wave analysis suggest potential targets between $6,700 and $7,200 in the near to mid-term. Additionally, the growth of Layer 2 solutions enhances Ethereum’s fundamental appeal, underpinning sustained demand. Investors should monitor these developments closely as Ethereum continues to navigate this critical phase of its market cycle.