Ethereum is entering a volatile phase after a powerful multi-week rally. Following a sharp surge that began in late April, ETH recently hit a local high near $3,850 before pulling back slightly and now consolidating below the $3,750 mark. While some investors fear the rally may be losing steam, others see this pause as a healthy step before another leg up.
Top crypto analyst Ted Pillows shared data showing that Ethereum’s on-chain volume has skyrocketed by 288% in just three weeks—a signal of growing activity and renewed interest. This spike in volume suggests that Ethereum’s network is heating up again, fueled by institutional capital flows and market-wide momentum.
The rise in volume reflects increasing investor participation and renewed confidence in Ethereum’s ecosystem. After months of stagnation and underperformance relative to Bitcoin, Ethereum is beginning to reclaim dominance. Since late May, ETH has outperformed BTC, and this momentum has now spilled over into several top-tier altcoins. Many analysts believe this could be the beginning of the long-awaited altseason.
What makes this moment especially significant is the convergence of technical strength and macro developments. Legal clarity in the US is improving, institutional capital is flowing in, and the market is displaying clear signs of accumulation rather than distribution. Pillows’ data supports the idea that smart money is positioning for a new cycle centered around Ethereum and the DeFi sector. While some caution that a brief correction may still occur, bullish sentiment is building.
Ethereum (ETH) continues its upward trajectory, currently trading around $3,770 after holding a consistent consolidation pattern just below the $3,860 resistance level. This 4-hour chart shows a clear bullish structure, with ETH forming higher lows since mid-July and testing the same upper boundary multiple times—an ascending triangle formation that typically signals upward continuation.
The 50 SMA (Simple Moving Average) on this timeframe has acted as dynamic support, now aligning around $3,690, which helped absorb recent pullbacks. Volume has slightly decreased during the last few sessions, a common occurrence in consolidation phases before breakout moves. Meanwhile, the 100 and 200 SMAs remain well below the current price, supporting the overall uptrend.
If ETH successfully breaks above the $3,860 resistance with a spike in volume, the next major psychological level to watch is $4,000. A failure to break out, however, may lead to a short-term pullback toward the $3,690–$3,650 range, where buying interest has previously emerged. If momentum continues, ETH could be setting up for its next leg higher, potentially confirming a shift into a broader altcoin rally.
Featured image from Dall-E, chart from TradingView
