- Ethereum’s 3-day chart forms a Descending Broadening Wedge near key $4,000 resistance.
- ETH/BTC pair breaks out from multi-year wedge, signaling start of altcoin market rotation.
- Over 1.8 million ETH bought by institutions in 2025 as exchange reserves continue to decline.
Ethereum (ETH) is already moving around a critical resistance mark of 4,000, having topped at the range of 3,800. A technical pattern that analysts pay close attention to is a Descending Broadening Wedge, which occurred in the 3-day chart. It is usually bullish, but it mostly leads to a breakout. The configuration depicts that ETH is developing higher lows and lower highs, making the range of trading narrower, and creating a prospective upside momentum.
The confirmation break lead would need a good character candle breaking above the upper trendline but with above-average volume. In case this happens, Ethereum might focus on reaching the level of $4200 in the short-term perspective. But, in case of the price not overcoming the resistance boundary and dropping below $3,500, there is a possibility of the downside risks being escalated, with the possible support levels at around the price of $3,200. The trends on volumes, Relative Strength Index (RSI), and Moving average convergence divergence (MACD) are signaling favorable trends at the moment.
Institutional Activity and Technical Indicators Support Momentum
Recent on-chain data reveals that institutional investors have purchased more than 1.8 million ETH since January 2025. Additionally, large wallets have withdrawn nearly 1.5 million ETH from exchanges, indicating long-term holding sentiment. Ethereum’s market cap now stands at $452.58 billion, showing strong capital support.
Tickeron’s AI Trading Agents provide further insights into Ethereum’s price movement. It’s Bull Agent tracks breakout signals and market rotations, while the Bear Agent manages downside risks. On July 9, Ethereum’s 10-day moving average crossed above the 50-day average, reinforcing a bullish trend. The MACD and momentum indicators also turned positive earlier this month, supporting the upward move.
The price dynamics of Ethereum against Bitcoin have not remained silent as well. Recently, ETH/BTC pair has made a break above a multi-year wedge pattern, which is a sign of a possible capital rotation towards Ethereum and other altcoins. This movement resembles the tendencies in all historical market cycles, as Ethereum outperformance has been the start of the overall altcoin rallies.
ETH/BTC Breakout and Altcoin Market Rotation Signal Strength
Technical indicators such as the Aroon Uptrend and TOTAL2 chart breakout reinforce this trend. Ethereum’s dominance may continue to grow as capital moves from Bitcoin to altcoins, supporting the ongoing narrative of a new altcoin season.
