naveed_anj

Ethereum Price Analysis: Closing Above $3,720 Signals Bullish Momentum with Potential 10% Surge
As of August 6, 2025, Ethereum ($ETH is currently trading in a neutral zone, with its price hovering around $3,671.09, based on recent market data. However, a close above the critical $3,720 resistance level could ignite a bullish breakout, potentially driving a 10% price increase, targeting approximately $4,092. This analysis explores the technical setup, key levels, and factors supporting this outlook for ETH/USDT on Binance.
Technical Overview
On the 4-hour chart, Ethereum is showing signs of consolidation after a strong 46% rally over the past month. The price is currently testing the $3,700 psychological level, with the 50-day moving average sloping upward and acting as dynamic support near $3,512. A decisive close above $3,720, which aligns with a key resistance zone, would confirm a bullish breakout, potentially invalidating the short-term neutral trend. The Relative Strength Index (RSI) is hovering in the 30-70 neutral zone, indicating room for upward movement without being overbought. However, a bearish divergence on the histogram suggests caution, as momentum could wane if the price fails to break through.
On the daily chart, ETH remains above the 200-day moving average ($3,565), reinforcing a longer-term bullish structure. The 50-day moving average, currently below the price at $3,562, could act as support if tested. A close above $3,720 would align with a bullish flag pattern observed on shorter timeframes, signaling continuation toward $4,000 or higher. Conversely, failure to break this level could lead to a pullback toward $3,512 or the trendline support near $3,400.
Key Levels to Watch
- Resistance: $3,720 (immediate), $3,800, $3,950 (major resistance).
- Support: $3,512 (50-day EMA), $3,400 (trendline), $3,380 (key support).
- Bullish Target (10% Increase): A close above $3,720 could push ETH to $4,092, representing a 10% gain from current levels.
- Bearish Scenario: A break below $3,380 could trigger a deeper correction toward $3,200–$3,250.
Fundamental Catalysts
Ethereum’s bullish potential is supported by several fundamental factors:
1. Institutional Interest: Recent data shows $332.9 million in inflows into U.S. spot ETH ETFs on a single day, marking the highest since their inception. This reflects growing mainstream adoption and confidence in Ethereum’s ecosystem.
2. Network Activity: Increased activity in decentralized finance (DeFi) and layer-2 protocols, with rising "blob" transactions burning ETH, reduces circulating supply and supports price appreciation.
3. Market Sentiment: The broader crypto market is buoyed by expectations of a U.S. Fed rate cut and regulatory developments like the GENIUS Act, which favor Ethereum-based stablecoin adoption. These factors enhance ETH’s bullish outlook.
Binance-Specific Insights
Binance’s open interest for $ETH has surged to an all-time high of $8.7 billion, indicating significant leverage in the market. Neutral funding rates suggest the market isn’t overly speculative, reducing the risk of a sharp reversal. A break above $3,720 with high trading volume (currently $33.62 billion daily) could fuel a rally, as rising leverage often amplifies price moves.
Trade Setup
- Bullish Case: If ETH closes above $3,720 on the daily chart with strong volume, enter a long position targeting $3,950–$4,092 (10% upside). Set a stop-loss below $3,600 to manage risk.
Bearish Case: If ETH fails to break $3,720 and drops below $3,512, consider a short-term short toward $3,400 or lower, with a stop-loss above $3,750.
Confirmation: Watch for a bullish MACD crossover and rising RSI to confirm momentum post-breakout.
Conclusion
Ethereum is at a pivotal moment, with a close above $3,720 signaling a strong bullish continuation that could yield a 10% surge to $4,092. While the current trend is neutral, technical indicators and fundamental drivers—such as institutional inflows and network activity—support a bullish outlook if key resistance is breached. Traders should monitor volume and price action closely, as a failure to break $3,720 could lead to consolidation or a minor pullback. Stay cautious, trade smart, and let’s see if ETH delivers that 10% move, InshAllah! 🚀
Disclaimer: Cryptocurrency markets are highly volatile. Conduct your own research and consult a financial advisor before making trading decisions.

1. Chart Patterns Supporting the Bullish Outlook
Recent analyses shared on TradingView and X highlight several bullish chart patterns in TOTAL3’s price action:Triple Bottom Pattern: A post on X from February 15, 2025, noted that TOTAL3 formed a triple bottom pattern, a highly bullish reversal pattern. This pattern occurs when the price tests a support level three times without breaking below, signaling strong buying interest and a potential trend reversal from bearish to bullish. The triple bottom suggests that altcoins have found a solid foundation, with a “V-reversal” potentially leading to sustained upward momentum in the coming weeks.
Ascending Channel: On May 8, 2025, a daily chart analysis on X showed TOTAL3 holding within an ascending channel, a bullish continuation pattern characterized by higher highs and higher lows. The price successfully backtested a key support level, and a bullish engulfing candle formed, indicating strong buying pressure. This pattern reinforces the bullish market structure, with harmonic price paths suggesting further upside.Falling Wedge Breakout: A post from April 1, 2025, identified a falling wedge pattern in TOTAL3, another bullish reversal pattern. The breakout from this pattern, combined with comparisons to similar setups in late summer 2024, suggests that altcoins are in a bottoming process, with potential for significant gains.These patterns collectively indicate that TOTAL3 is in a strong bullish phase, with multiple confirmations of support and reversal signals.
2. Key Support and Resistance LevelsSupport Zones:
Recent analyses point to a critical support zone around $790 billion, which previously acted as resistance in March–April 2024. TOTAL3 is currently holding above this level, reinforcing its role as a strong foundation for further gains. Another demand zone near $820 billion has been identified as a potential buying area during pullbacks.Resistance Zones: The next major resistance lies around $1.16 trillion, the peak reached in December 2025. Breaking this level could propel TOTAL3 toward $1.6 trillion, a target projected by some analysts based on the current cycle’s channel-up pattern.Pullback Areas: Posts on X from May 11, 2025, suggest a potential pullback into the daily timeframe range (around $790–820 billion) before the bullish trend resumes. This pullback could offer a strategic entry point for long positions.