Ethereum is entering the volatile stage after a strong multi-week gathering. Following a sharp surge that began in late April, ETH recently reached a local high of nearly $3,850 before a slight retreat, consolidating below $3,750. While some investors fear that the rally is losing steam, others see this pause as a healthy step before lifting another leg.
Top Crypto analyst Ted Pillows shared data showing that Ethereum’s on-chain volume surged 288% in just three weeks. This is a signal of increased activity and renewed interest. This surge in volume suggests that Ethereum’s network is once again hot, fueling institutional capital flows and overall market momentum.
With improved legal clarity in the US and macroeconomic conditions that support risk-on assets, Ethereum appears to be in a strong position. Analysts argue that this recent integration can provide an ideal entry point before it rises further, especially as Altcoins regains strength and capital revolves back into ETH.
Will Altseason arrive? On-chain volume signals Ethereum that leads to charging
According to Ted Pillow, Ethereum’s on-chain USD volume has been at its highest level since late 2021, and this explosive growth in activity could underscore a significant shift in market sentiment and mark the beginning of a new chapter in Ethereum and the broader altcoin market.
The increased volume reflects an additional renewed reflection of increased investor participation and confidence in the Ethereum ecosystem. After months of stagnation and unperformance compared to Bitcoin, Ethereum is beginning to regain control. ETH has outperformed BTC since late May, and this momentum is currently flowing into several top tier Altcoins. Many analysts believe this could be the start of the much-anticipated alto season.
What makes this moment particularly important is the convergence of technical strength and macro development. The US legal clarity has improved, institutional capital flows, and the markets show clear signs of accumulation rather than distribution. Pillows data supports the idea that Smart Money is a new cycle positioned around the Ethereum and Defi sectors. We note that short corrections may still occur, but bullish emotions are built.
ETH’s eyes break through as the $3,860 resistance is focused
Ethereum (ETH) continues its upward trajectory and is currently trading around $3,770 after maintaining a consistent integration pattern below the $3,860 resistance level. This 4-hour chart shows a clear bullish structure in which ETH forms a higher low since mid-July, testing the same upper limit multiple times.
The 50 SMA (simple moving average) in this time frame served as dynamic support, adjusting it to about $3,690 now, absorbing the recent pullback. Volume has been reduced slightly during the last few sessions. This is a common occurrence in the integration phase before breakouts move. Meanwhile, the 100 and 200 SMAs are far below current prices and support the overall uptrend.
If ETH exceeds $3,860 resistance and above the volume spike, the next major psychological level to watch is $4,000. However, if you don’t infiltrate, you could potentially experience short-term pullbacks in the $3,690-3,650 range where purchase interest was previously accrued. As momentum continues, ETH may be set higher on the next leg, potentially confirming a shift to the wider Altcoin rally.
Dall-E special images, TradingView chart
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