Ethereum Approaches Significant 4-Year Breakout, Targeting $3,500 ETH by Weekend?

Ethereum has successfully breached the long-standing $2,800 resistance level, with bulls now firmly steering the price movement. As of this writing, ETH is trading above $3,280 for the first time since February, sitting just 9.65% away from breaking out of a four-year channel that has kept it below its 2021 all-time high of $4,891.

With a bull flag pattern emerging and trading volume exceeding $40 billion, it seems probable that Ethereum will surpass $3,500 before the weekend and may reclaim the significant $4,000 psychological threshold sooner than expected.

Ethereum Breakout Expected to Outperform the Market Across Key Metrics

Ethereum has clearly outperformed rival cryptocurrencies across all major metrics in recent times.

#Crypto market is up today, with #BTC and #ETH moving above $118,000 and $3,000, respectively. However, inflows alone will not quickly drive #Bitcoin to $150,000, analysts caution. https://t.co/m0ChRlgjaP

— Cryptonews.com (@cryptonews) July 16, 2025

Data from SosoValue indicates that Ethereum has seen daily inflows from institutional investors via ETFs for eight consecutive trading sessions, averaging daily purchases of $120 million.

Source: SosoValue

BlackRock, through its ETHA index, has amassed over $5 billion in Ethereum, with more than $1 billion in ETH acquired between June and the present.

Ethereum co-founder Joseph Lubin, akin to Michael Saylor for Ethereum, is now applying the MicroStrategy Bitcoin strategy to $ETH.

Tom Lee, chief investment officer (CIO) at Fundstrat and chairman of Bitmine Immersion Technologies, remarked that ETH has remained within a trading range since 2021.

Nonetheless, the rise of stablecoins like USDC and USDT, along with Wall Street’s tokenization of real-world assets, is fueling heightened demand for the DeFi blockchain.

He pointed out that transaction activity on Ethereum is also increasing, with over 1.2 million daily transactions, indicating renewed interest from investors.

3/
Head of Digital Assets for Fundstrat @SeanMFarrell notes that transaction activity is picking up on Ethereum
data from @TheBlock__ $BMNR @BitMNR pic.twitter.com/5frs6rhWNr

— Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) July 15, 2025

In a similar vein, renowned investor Peter Thiel is joining Tom Lee’s Bit Mine initiative to implement the same strategy for ETH.

SharpLink Gaming Accumulates $700M in ETH as Price Targets $4,000 and Beyond

SharpLink Gaming has been actively building its positions, amassing a $974 million ETH portfolio.

The Nasdaq-listed firm recently acquired and staked an additional $15.8 million of ETH into its LSETH, establishing itself as the largest single corporate holder of $ETH, surpassing even the Ethereum Foundation’s holdings.

SharpLink added 6,377 ETH this week, bringing its total to nearly 312,000 ETH worth $974M, solidifying its position as a leading corporate Ethereum holder. #SharpLink #ethereum https://t.co/5BIcO1254D

— Cryptonews.com (@cryptonews) July 16, 2025

These developments are taking place as the number of leveraged shorts on ETH reaches an all-time high, while ETH/BTC remains 50% below its peak in November 2024.

The positive news is that ETH/BTC has now reclaimed the 1D EMA200 for the first time in a year, restoring the Ethereum fractal, which mirrors the same structure that $BTC experienced during 2018–2021.

Source: TradingView

Many market participants are now eyeing the $4,000 level as the next significant target, which appears to be well within reach.

Notable crypto Key Opinion Leader “Bonk Guy” even foresees targets reaching $10,000 before the current cycle concludes.

Joseph Lubin is the Ethereum equivalent of Saylor and is about to apply the $MSTR playbook on $ETH via $SBET
and now you have the legendary Peter Thiel getting involved in Tom Lee’s $BMNR to do the same for ETH
all while the amount of leveraged shorts on ETH is at all-time highs
the mother of… https://t.co/I2EKJ4kW8F pic.twitter.com/vH9lY8EP5X

— Unipcs (aka ‘Bonk Guy’) (@theunipcs) July 16, 2025

He conveyed the belief that ETH’s ascent to $10,000 will be swifter and more aggressive than many anticipate, urging people to “prepare for the most explosive bull run of our lifetimes.”

Technical Analysis: Wyckoff Accumulation Pattern Complete

From a technical standpoint, the ETH/USD daily chart reveals a distinct Wyckoff accumulation pattern, culminating in a breakout above resistance following a “Spring” phase and a “Coil and Compression” zone.

The asset has decisively moved above the $3,100 level after the “First Expansion/Release,” confirming bullish momentum and entering the designated “Take Profit zone” near $3,278.

Source: TradingView

This significant upward movement is underpinned by previous phases, including the Secondary Test (SC), low-volume test, and successful breakout over the downtrend line (creek), all of which suggest a completed accumulation cycle.

Price action is now progressing into higher resistance levels, with $3,454 and $3,757 serving as the next major upside targets.

$ETH forming a clear Bull Flag.
This is not comparable to memes and other hype coins. Zoom in and out to see the bigger picture.
ETH is very close to breaking out. You know my magic number ~ $4,000.
ETH/BTC breaking $16K and we all remember what followed +300% straight final… pic.twitter.com/iXvo1ZWJfy

— Henry (@LordOfAlts) July 16, 2025

If the price experiences a retracement, the Fibonacci retracement zones between $2,750 and $2,650 (0.5–0.618 levels) could offer strong support before any continuation.

The post Ethereum 9.65% Away From Massive 4-Year Breakout – $3,500 ETH Before Weekend? appeared first on Cryptonews.