Ethereum is once again catching the eye of traders after weeks of consolidation. A precise correlation indicator hints at a major bullish phase on the horizon. Savvy investors are closely monitoring this signal, known to precede significant price movements historically.
The relationship between Bitcoin and Ethereum remains a key indicator for anticipating ETH movements. Recent data shows a correlation of 0.85, a level observed only before major market rallies. When BTC consolidates, Ethereum tends to accumulate strength before outperforming.
Inflows to exchanges confirm this dynamic: whales are accumulating ETH, signaling renewed confidence in a bullish scenario. This on-chain activity mirrors the pre-bull periods of 2021 and early 2024, when institutional interest was progressively strengthening.
Market sentiment is evolving in parallel. Growing institutional demand and controlled volatility support the idea of an imminent breakout, as ETH consolidates above key technical levels.
The ETH/BTC ratio has bounced off a critical support at 0.035, a level historically associated with the beginning of altseason. The RSI is forming a bullish divergence, while the MACD is approaching a positive crossover, two strong signals of a momentum reversal.
The next major resistance lies between $3,800 and $4,000. A breakout with volume could propel ETH toward $5,000, representing more than 25% upside potential. Key support remains positioned around $3,200, firmly defended during recent corrections.
The macro environment also favors Ethereum: spot ETFs have recorded $150 million in net inflows over two weeks, and more than 28% of the total supply is now staked, reducing selling pressure. These combined factors strengthen a bullish scenario for the coming weeks.
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