Technicals Align For A Bullish Ethereum Summer

Ethereum abruptly breaks out of its lethargy. By breaking through a strategic price zone, the asset marks one of its clearest moves in weeks. Rising volumes, aligned technical signals, renewed volatility: all the markers of a market awakening are present. This unexpected sequence places Ethereum back in the spotlight, between short position liquidations and the return of speculative appetite. Such a surge raises as many questions as it does intrigue, while the ecosystem still struggles to find a clear direction.

A Technical Breakout That Changes the Game

After eight weeks of an exceptionally tight graphical squeeze, Ethereum has crossed a decisive threshold by becoming the number one choice for crypto ETFs. Trader and analyst Cazz, closely followed on social network X (formerly Twitter), clearly explained this bullish breakout: “Ethereum broke a tight consolidation zone over eight weeks with high volume and weekly closes near the highs.”

Ethereum bull case:

The $ETH/USD weekly chart broke out of an 8-week tight consolidation on high volume, strong closes near weekly highs, and rapid movement through a historically thin price zone. This is classic big money behavior.

Meanwhile, the $SOL/$ETH chart is breaking… pic.twitter.com/B3m700vgvO

— Cazz (@jakecazz) July 16, 2025

The asset crossed a historically lightly defended price zone, described as a thinly defended price zone, which favored a sudden acceleration of the move. Such a configuration is often associated with discreet but powerful institutional activity. Cazz refers to this as “a classic strategy of large investors,” suggesting that major holders were at work in this breakout dynamic.

This reversal fits into a clear technical and comparative context, which can be summarized as follows :

• A confirmed bullish breakout : clean exit from an 8-week consolidation range, with weekly closes near the highs ;

• The “thin” price zone quickly crossed : a signal of low resistance in that area, favorable to rapid institutional movements ;

• A sharply rising volume : significant increase in trading volume, supporting the legitimacy of the move ;

• Solana (SOL) struggling against ETH : on the SOL/ETH chart, Solana breaks a long-term support, reinforcing the perception of capital transfer towards Ethereum ;

• Return of retail investors : Cazz notes that “Ethereum memes are coming back to life on large volumes,” an indirect but relevant indicator of renewed public interest.

After a long latency phase, Ethereum seems to reposition itself as the preferred Layer 1 for institutional investors, supported by solid fundamentals (decentralized finance, tokenization of real assets, smart contract infrastructure). This breakout move therefore does not only concern the charts but could well reflect a medium-term change in perception.

Massive Liquidations and the Strong Comeback of the Derivatives Market

Alongside the technical signal mentioned earlier, Ethereum’s derivatives market recorded spectacular figures, revealing a dramatic shift in crypto investors’ sentiment.

More than $152 million in Ethereum short-selling contracts were liquidated in just 24 hours, accounting for more than half of all crypto liquidations over the same period.

At the same time, the price of ETH jumped nearly 9%, surpassing $3,330, according to CoinGecko data. Ethereum even beats Bitcoin in volume, with $132 billion traded versus $109 billion for BTC on the relevant day.

This activity was not accompanied by excessive leverage, which is notable. According to Glassnode, ETH futures volumes rose 27%, while open interest increased by 8.73%, with a neutral funding rate at 0.0047%.

#Ethereum stands out as the only top-10 non-stablecoin asset with rising futures volume over the past 24h (+27%). Open Interest is also up (+6%), while funding remains neutral at 0.0047% – suggesting fresh positioning, but without signs of excessive leverage. pic.twitter.com/wKLWIXrhdu

— glassnode (@glassnode) July 16, 2025

This last point suggests the entry of participants without aggressive speculation, often interpreted as a sign of strength. Arthur Hayes, founder of BitMEX, seized the moment to announce that his fund, Maelstrom, would invest in leading DeFi projects in their verticals. On X, he did not hesitate to declare: “It’s Ethereum season.”

It's $ETH szn, what are we buying @MaelstromFund :

The best in class for every DeFi vertical. Some charts are better than others, but they will all rip if $ETH continues outperforming.

— Arthur Hayes (@CryptoHayes) July 16, 2025

This favorable climate is also supported by strong technical signals: Ethereum formed a golden cross on the daily timeframe, a bullish crossover of the 50 and 200-day moving averages, often considered a sign of prolonged bullish trends.

The RSI now exceeds 80, and the ADX at 29 confirms the strength of the trend. Facing support around $3,000, the next resistances lie between $3,500 and $4,000. All of this occurs in a recovering global market, where geopolitical risk and regulatory volatility currently seem relegated to the background.

In the medium term, this combination of technical signals, institutional flows, and solid market data could well open a new chapter for Ethereum crypto. The possible arrival of new regulations and increasing corporate interest (such as SharpLink Gaming, which recently acquired $225 million in ETH) signal Ethereum’s positioning as a strategic asset.