Ethereum (ETH) is experiencing a significant upward momentum, with its price surging over 11% this week—the largest gain seen in the third quarter of 2025. This rally marks a potential shift in market sentiment, as ETH has broken through a critical trendline resistance and reclaimed key technical levels. For the first time since early July, Ethereum has recorded four consecutive green weekly candles, signaling renewed bullish strength in the market.
The current price surge was catalyzed by macroeconomic developments—specifically, the U.S. Federal Reserve’s decision to cut interest rates by 50 basis points. This move has sparked expectations of a global monetary easing cycle, increasing investor appetite for risk-on assets like cryptocurrencies. Lower interest rates reduce the opportunity cost of holding non-yielding assets, making digital currencies more attractive to both institutional and retail investors.
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Rising Derivatives Activity Signals Strong Market Confidence
One of the most telling signs of Ethereum’s resurgence is the surge in open interest (OI) across futures markets. Open interest now stands at $11.74 billion, an increase of over $1 billion in less than a week. This follows a previous peak on August 5 when OI surpassed $11 billion—even as ETH dipped to $2,111.
This renewed buildup in open interest suggests that traders are returning to Ethereum futures with growing confidence. The rise indicates fresh capital entering long positions, reflecting optimism about future price appreciation. Derivatives markets are currently leading the price action, with funding rates climbing sharply over the past four days—another strong signal of increasing long-side pressure.
Notably, while spot trading volume remains relatively flat, derivatives activity is driving momentum. This dynamic underscores that leveraged traders and speculators are at the forefront of this rally, potentially amplifying both upward and downward volatility in the short term.
DeFi Revival: Ethereum’s TVL Jumps $4 Billion in 48 Hours
Beyond price movements, on-chain metrics reveal a broader revival in Ethereum’s ecosystem. Total Value Locked (TVL) in Ethereum-based decentralized finance (DeFi) protocols has surged by nearly $4 billion within just 48 hours, reaching $48.33 billion. This rebound comes after a challenging third quarter, during which DeFi activity slowed and TVL declined from a June high of $60.5 billion to $42 billion.
The rapid recovery in TVL suggests renewed trust and participation in Ethereum’s smart contract ecosystem. Users are once again depositing ETH and stablecoins into lending platforms, yield farms, and liquidity pools—indicating improved risk appetite and confidence in network fundamentals.
This resurgence aligns with growing anticipation around upcoming Ethereum network upgrades and Layer-2 scaling solutions, which continue to enhance transaction efficiency and reduce fees. As scalability improves, developer activity and user adoption are likely to follow, further strengthening Ethereum’s position as the leading platform for decentralized applications.
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Technical Breakout Confirms Bullish Shift
From a technical analysis perspective, Ethereum has completed a significant structural bullish breakout (BOS). Over the past 24 hours, ETH has broken above a long-standing downward resistance trendline and closed above $2,464—a level that had previously acted as strong resistance.
Independent analyst Kingpin Crypto highlighted that weekly charts show ETH entering a strong demand zone. He stated:
“ETH weekly looks incredible—price is clearly in a demand area. If it can hold above $2,750, going all-in on Ethereum becomes a very logical move.”
This breakout confirms a shift from bearish to bullish market structure. By breaking higher lows and surpassing the 200-day Exponential Moving Average (EMA), Ethereum has validated upward momentum. Such technical confirmations often attract algorithmic traders and trend-following funds, which can accelerate further gains.
Key Price Levels to Watch
- Immediate Target: $2,800
With momentum building, the next psychological and technical resistance lies at $2,800—a level not seen since mid-2024. - Potential Pullback Zone: $2,400
In the event of a correction, support is expected around $2,400. This zone aligns with a fair value gap (FVG) and corresponds to the Fibonacci retracement level between 0.50 and 0.618 of the previous downswing. - Upside Catalysts: Spot ETF approvals, protocol upgrades (e.g., EIP-4844), and increasing institutional inflows could propel ETH beyond $3,000 in the coming months.
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Frequently Asked Questions (FAQ)
Q: What caused Ethereum’s price to rise today?
A: The primary catalyst was the U.S. Federal Reserve’s 50-basis-point rate cut, which triggered a broader risk-on environment. Lower interest rates make cryptocurrencies more appealing compared to traditional fixed-income assets.
Q: Is Ethereum entering a new bull run?
A: Signs point to a potential new uptrend. Key indicators such as rising open interest, TVL recovery, and technical breakouts suggest growing bullish momentum. However, sustained gains above $2,800 will be needed to confirm a full bull cycle.
Q: How does open interest affect ETH price?
A: Increasing open interest alongside rising prices indicates new money entering long positions. This often precedes strong directional moves. Conversely, falling OI during rallies may signal short-covering or lack of conviction.
Q: Why is Total Value Locked (TVL) important for Ethereum?
A: TVL reflects user engagement and capital flow within DeFi protocols. A rising TVL shows growing trust in Ethereum’s ecosystem and often correlates with increased demand for ETH as collateral and gas fees.
Q: What are the next key resistance levels for ETH?
A: The immediate target is $2,800. A breakout above this level could open the path toward $3,000. Strong support exists near $2,400 if a pullback occurs.
Q: Could an Ethereum ETF boost prices further?
A: Yes. While no spot ETH ETF has been approved yet in the U.S., growing speculation around regulatory approval could act as a major catalyst, similar to Bitcoin’s ETF-driven rally earlier in 2025.
👉 Stay ahead of ETF developments and market-moving events—get real-time updates here.
Conclusion
Ethereum’s recent 11% weekly gain is more than just a price movement—it reflects a confluence of favorable macroeconomic conditions, strengthening on-chain fundamentals, and decisive technical breakouts. With derivatives activity heating up, DeFi TVL rebounding sharply, and market structure turning bullish, ETH appears poised for further upside in the near term.
While short-term volatility remains likely, especially given leveraged positions in futures markets, the broader outlook for Ethereum continues to improve. Investors should monitor key levels at $2,800 and $2,400 while watching for catalysts such as ETF news or network upgrades that could accelerate momentum.
As always in crypto markets, risk management is essential—but for those watching closely, Ethereum’s latest move may signal the beginning of a powerful new phase in its evolution.