Ethereum has surpassed the $3,000 mark for the first time in 2025, currently trading at $3,020.86, marking a significant turnaround from the low of $1,794 in April.
This milestone was achieved when Bitcoin surged to a new all-time high above $118,400, creating perfect conditions for the second-largest cryptocurrency to begin its own parabolic growth.
This breakthrough came after an arduous eight-month battle where Ethereum's price fell from an opening level near $3,298 in January to cycle lows in April.
Historical price data shows a tumultuous journey in 2025, with February closing at around $2,900, March at $2,650, and a catastrophic collapse in April to $1,794 before starting to recover.
President Trump's recent statement on Truth Social that cryptocurrencies are "outperforming" has caused significant buying pressure in digital asset markets.
The moment Trump confirmed, along with the unprecedented weakness of the dollar, created ideal conditions for the rise of risky assets, with institutional investors viewing this as a signal that monetary policy would continue to be loosened.
Ethereum's breakout coincided with Bitcoin's explosive price surge past $117,000, liquidating over $1.14 billion in leveraged positions within 24 hours.
The liquidation of Ethereum alone contributed to short-selling across the market, pushing both cryptocurrencies to new highs.
The Collapse of the USD Drives the Rise of Cryptocurrencies on Major Assets
Trump's proposal to cut interest rates by 300 basis points has created strong momentum for alternative assets, as the dollar is experiencing its worst performance since 1973.
The Dollar Index has decreased by 10.1% to date, trading 6.5 points lower than the 200-day moving average, the largest range in 21 years.
Emergency monetary intervention in a growing economy with an annual growth rate of 3.8% would push inflation above 5% while causing the dollar to decline further by 10%.
Historical precedents warn against such aggressive policies, as the Federal Reserve has never implemented cuts exceeding 75 basis points outside of recession periods.
The analysis from Kobeissi Letter predicts asset prices will rise sharply after interest rates may be cut, with gold targeting $5,000 an ounce and capital continuing to flow into cryptocurrencies.
The correlation between Bitcoin and the weakness of the dollar makes digital assets the main beneficiaries of currency depreciation and devaluation.
Corporate treasury adoption accelerates as companies seek protection against currency devaluation, with over $1 billion allocated to cryptocurrency treasuries just this week.
The institutional revolution combined with retail FOMO creates sustained buying pressure.
According to 10X Research, Bitcoin ETFs have bought $15 billion in BTC since mid-April, with steady institutional demand supporting higher trading ranges.
Trump's crypto-friendly policies include establishing a national cryptocurrency reserve fund and appointing pro-crypto officials to key management positions.
Technical Analysis Confirms Bullish Breakout Pattern
The daily chart of Ethereum shows a textbook breakout scenario after months of consolidation in a descending channel.
This asset took quite some time to form lower highs and lows, ranging from $4,000 to $1,500, before breaking decisively above the Ichimoku cloud resistance.
The Ichimoku cloud breakout indicates a shift from bearish momentum to bullish momentum, with prices sure to reclaim the psychological level of $3,000.
The technical setup identifies key support levels at $2,950 - $3,050 after the breakout, with gradually increasing targets of $3,600, $4,200, and $4,800.
In fact, according to MerlijnTheTrader, the weekly outlook even provides stronger bullish confirmation, indicating a clear recovery of the resistance level at $2,200 with minimal retracement.
Price volatility shows strong buying pressure across multiple time frames, with forecasts pointing to $10,000 based on historical bullish market patterns.
The broader context of Bitcoin establishing new highs above $117,000 provides additional momentum for Ethereum, which often outperforms Bitcoin percentage-wise during parabolic phases.
The previous resistance level at $4,000 represents the next major target with historical significance as the cycle's peak.
The main risk factors include failing to maintain support above $2,800-$2,900, which could indicate false breakout scenarios and the possibility of retesting the $2,200 level.
However, the current uptrend and institutional participation indicate prices will continue to rise to the initial level of $4,000.
Based on technical indicators and market structure, Ethereum is positioned to continue rising to the range of $3,600 - $4,200 in the near term, with the potential to reach above $4,000 if Bitcoin's uptrend persists. $ETH