Ethereum did show immense strength, closing above a critical resistance level and even climbing as high as $3,039 for a brief moment. The rush is driven by increasing ETF inflows, improving tech in its core blockchain, and a boom in its Layer-2 ecosystem. Ethereum has all the makings of a network well-positioned for a run to new all-time highs by 2025, analysts have claimed.

Ethereum has been booming in adoption as of late. This growth is largely propelled by decreasing gas fees and PST’s enhanced user experience, both of which attract developers and users. New and planned upgrades will, soon enough, add even more efficiency and scalability to the network.

Technical Breakthrough and Price Momentum

ETH has managed to break above the key resistance level of $2,836.5, indicating a possible bullish trend. As of writing on July 13, Ethereum had a trading price near $2,951—up more than 5% in one week. Ethereum witnessed an impressive total trading volume of $44.75 billion, highlighting an increasing enthusiasm in the market.

According to technical analysts, a strong break above $3,200 would open the door to as much as 80% upside for ETH. Targets for Ethereum are set between $3,629 – $8,000 towards the end of 2025.

This price structure aligns with the Fibonacci 161.8% golden extension, clearing the path to $3,323 and beyond. - technical analysts from FXLeaders

Ethereum Network Enhancements

Ethereum’s future development is focused on major technological breakthroughs to increase the network’s scalability and efficiency. The recent addition of EIP-4844 and the expected Shapella (EIP-6780), slated for late Q4 2025, to the Ethereum roadmap will finally create blob-carrying transactions. These upgrades will set the stage for full Danksharding, greatly increasing Ethereum’s efficiency and reducing cost for dApp developers and end-users alike.

These upgrades, collectively called Ethereum’s surface upgrades, are aimed at lowering transaction costs and speeding up throughput to make Ethereum a more competitive and user-friendly environment. The network’s new, more powerful capabilities are sure to fuel even greater adoption and innovation throughout the Ethereum ecosystem.

With more than 35 million ETH currently staked, the network has shown overwhelming confidence and commitment from its users. With exchange reserves continuing to plummet, that’s a sign that long-term holders have no intention of selling. All of this supports a promising Ethereum future.

ETF Inflows and Layer-2 Growth

Ethereum’s recent surge above $3,000! This unprecedented wave was propped up by a tsunami of ETF inflows alongside a renewed appetite for all things Layer-2. Ethereum ETF inflows skyrocketed to a new all-time high of $907.99 million. That would be the largest weekly total since ETF trading launched in July 2024.

Three of ETH ETF’s top 10 inflow days have happened this week. - Nate Geraci

Layer-2 solutions such as Arbitrum, Optimism, and Base are experiencing explosive increases in their daily active users. They are experiencing a massive boom in Total Value Locked (TVL). As of late March 2023, the transaction volume on these Layer-2 networks has passed Ethereum’s mainnet. This transition highlights how important these scaling solutions have become.

Layer-2 solutions are growing fast, relieving pressure on the mainnet. They provide their users with quicker and cheaper transaction alternatives. This milestone is an important step toward Ethereum’s long-term growth and scalability.