Ethereum $ETH has surpassed the $3,000 mark for the first time in 2025, marking a key turning point from the April low of $1,794.Ethereum has broken the $3,000 barrier for the first time in 2025, currently trading at $3,007, marking a significant reversal from the lows recorded last April at $1,794.

This milestone comes on the heels of Bitcoin’s continued success as it continues to hit new ATHs above $118,400, creating the ideal conditions for a possible parabolic rally for the second-largest cryptocurrency as well.

The break above $3,000 comes after eight difficult months. Ethereum plunged after opening January near $3,298, falling to its April low.

The data shows the strong impact of volatility throughout the year: February closed around $2,900, March at $2,650 and then the collapse in April to $1,794, before recovering.

President Trump's recent statement on Truth Social, in which he claimed that cryptocurrencies are "through the roof," has triggered strong buying pressure across digital asset markets.

The timing of Trump's endorsement, combined with unprecedented dollar weakness, created ideal conditions for the appreciation of high-risk assets, even prompting institutional investors to interpret the situation as a signal of accommodative monetary policy.

Ethereum's breakout comes alongside Bitcoin's explosive rally above $118,000, which led to the liquidation of over $1.14 billion in leveraged positions in 24 hours.

Of the total, over $243 million went to Ethereum, contributing to the short squeeze that pushed both cryptocurrencies to new highs.

The dollar's collapse fuels the crypto rally.

Trump's proposed 300 basis point rate cut has created favorable conditions for alternative assets to thrive. On the other hand, the dollar is currently experiencing its worst performance since 1973.

The dollar index has fallen 10.1% since the beginning of the year, and is now trading around 6.5 points below its 200-day moving average, its widest gap in 21 years.

If Trump's idea were to gain traction, the effect would be disastrous on inflation. In a growing economy like the US, where annual GDP growth is 3.8%, the cost of living would rise to 5% while the value of the dollar would fall by another 10%.

Such an aggressive approach has never been attempted before. The Federal Reserve has never applied cuts exceeding 75 basis points, and only ever during recessions.

According to Kobeissi Letter's analysis, potential rate cuts could lead to aggressive inflation of investment assets. Gold is now targeting $5,000 an ounce, while other safe-haven assets like oil are hitting new records, and now even cryptocurrencies, which are experiencing continued capital flight.

The close connection between Bitcoin and dollar weakness makes digital assets among the first to benefit from currency devaluation.

The pace at which private and publicly traded companies are adding Bitcoin to their balance sheets is also accelerating. This week alone, over $1 billion in BTC was allocated to corporate reserves.

The new trend among institutional investors is coupled with the growing FOMO among individual investors, creating sustained buying pressure.

Bitcoin ETFs have added $15 billion in BTC to their funds since mid-April, according to 10X Research.

Trump's crypto-friendly policies include the creation of a national crypto reserve and the appointment of pro-crypto officials to key government positions.

Technical analysis confirms the bullish breakout

Ethereum's daily chart shows a textbook breakout after months of consolidation within a descending channel.

The asset spent a long time forming lower highs and lower lows, oscillating between $4,000 and $1,500, before decisively breaking above the Ichimoku cloud resistance.

The breakout above the Ichimoku Cloud marks the shift from bearish to bullish momentum. Meanwhile, the price has steadily recovered the psychological level of $3,000.

The technical structure identifies the key support zone between $2,950 and $3,050 after the breakout. Bullish projections, however, point to $3,600, $4,200, and $4,800.

According to MerlijnTheTrader, the weekly outlook reinforces the bullish signal, showing a clear recovery above the resistance at $2,200 without any major corrections.

Price action indicates strong buying pressure across all timeframes, with projections (blue arrows) also pointing towards $10,000 given the trend of past bull cycles.

Bitcoin is now aiming for new highs above $118,000. This would be enough to give further momentum to Ethereum, which has so far outperformed Bitcoin in percentage terms during the parabolic phase.

Now the resistance at $4,000 represents the next major target.

The main risks include failure to hold support between $2,800 and $2,900. In that case, it could be a false breakout and a possible return to the $2,200 area.

Current momentum and institutional participation seem to confirm the race towards the 4,000 mark as the primary target.

Based on technical indicators and market structure, Ethereum appears capable of continuing to rise towards $3,600-$4,200 in the short term, especially if supported by BTC's rally.

FOLLOW BE_MASTER BUY_SMART 💰💰💰 Appreciate the work. 😍 Thank You. 👍 FOLLOW BeMaster BuySmart 🚀 TO FIND OUT MORE $$$$$ 🤩 BE MASTER BUY SMART 💰🤩