Ethereum's price could potentially surge if the bulls regain dominance.
Ethereum's Bullish Setup Suggests a New Rally, Experts Predict
Ethereum's current price stagnation below $3,950 may not be a sign of the end of a rally, but a temporary consolidation. This view is supported by several key factors, including expert forecasts, strong institutional inflows, and on-chain activity.
Multiple expert forecasts predict Ethereum surpassing $5,000 soon, with potential rallies up to $6,000 or higher by late 2025 if it breaks key resistance levels around $4,800. For example, CoinDCX anticipates a rally past $4,800 could push the price to $5,500–$6,000 by end of August 2025.
Fundstrat’s Tom Lee, a respected market analyst, sees Ethereum reaching $10,000 to $15,000 before the end of 2025, driven by growing institutional adoption, ETF inflows, and broad financial sector migration to blockchain.
Ethereum’s outperformance relative to Bitcoin in 2025 (41% vs. 30% YTD gains) and major spot ETF inflows exceeding $1 billion in a single day underscore strong demand and on-chain activity supporting price appreciation.
Despite current price "stagnation" below $3,950, on-chain metrics such as stablecoin usage, developer activity, and institutional accumulation present a bullish setup. This suggests the divergence between price and on-chain activity could precede a new rally rather than signal a reversal.
Ethereum has formed a "cup and handle" pattern but is currently stagnating below $3,950. To confirm continuation of the new rally phase, breaking above this zone decisively is likely required. However, the broader structural and fundamental factors—strong ETF inflows, regulatory support via stablecoin-friendly legislation (GENIUS Act), and Wall Street’s increasing blockchain adoption—favor a sustained bullish trend in Ethereum over the medium to long term through 2025.
Continued growth in Ethereum addresses could provide a solid foundation for price stabilization and rebound. Ethereum is trading in a descending channel after failing to break through the resistance at $3,900. To preserve its bullish structure, Ethereum must quickly reclaim the $3,900 level. The inability to break key levels could invalidate the bullish pattern.
The Relative Strength Index (RSI) for Ethereum is at 57, indicating a neutral dynamic without a clear breakout signal. The divergence between Ethereum's price action and on-chain activity could reveal underlying strength. Ethereum network activity is surging, with a +29.94% increase in new addresses and a +3.17% increase in active addresses.
In summary, given the prevailing market conditions and expert outlooks, Ethereum's bullish setup appears more likely to be the start of a significant new rally rather than merely temporary price stagnation. However, near-term price movements will hinge on overcoming key resistance and sustaining institutional demand.
Investing in Ethereum could be a profitable decision, given the predictions by multiple experts anticipating Ethereum surpassing $5,000 soon and potential rallies up to $6,000 or higher by late 2025. Furthermore, financial technology is playing a crucial role in the growth of Ethereum, as highlighted by the growing institutional adoption and ETF inflows driving the price upward.