Ethereum (ETH) has recently broken above a falling wedge pattern that has shaped its price action since July, now trading at $3,201. This movement signals a renewed strength among buyers, indicating a potential shift in market dynamics.
In a significant development, whale investors have opened up $426 million in long positions following this breakout. This surge in activity coincides with a substantial increase in futures open interest, which jumped by $512 million overnight. This suggests that new capital is entering the market, reflecting a strong institutional conviction in the asset.
Key resistance levels for Ethereum are identified at $3,500 and $3,750, with a clear pathway toward $4,000 if buyers can maintain control above the critical support level of $2,823. The recent price movement has been characterized by a notable increase in trading volume, particularly as the price broke above the upper trendline of the wedge.
Technical indicators currently support this bullish outlook. The Parabolic SAR is positioned below price candles, indicating an upward trend, while the MACD line is above the signal line, with positive histogram bars reinforcing the strength of the momentum.
Moreover, the recent activities of large holders demonstrate a growing confidence among major market participants. In addition to the long positions, sentiment appears to be shifting positively, as former short positions have started to close, signaling a potential rebound in ETH”s price.
In another noteworthy development, BlackRock has filed for a staked ETH ETF, which is set to invest 70 to 90 percent of its assets through custodians such as Coinbase and Anchorage Digital. This filing is expected to provide further legitimacy and attract traditional investors to the Ethereum ecosystem.
On the technical side, the recent Fusaka upgrade, which went live in November 2025, has significantly boosted the network”s data capacity. This upgrade allows Ethereum to handle up to 100,000 transactions per second, potentially reducing transaction fees on Layer 2 solutions and increasing overall network activity.
As Ethereum”s market cap hovers around $380 billion, daily active addresses have reached 1.2 million, reflecting a 12 percent increase over the past week. This uptick in network usage, coupled with heightened whale activity, positions Ethereum for continued growth in the near term.
With institutional ETH holdings now totaling approximately $13 billion across various investment vehicles, the market is closely watching how these developments will influence Ethereum”s price trajectory moving forward.
