Ethereum is undergoing a healthy revision following an explosive multi-week rally, which has seen prices rise by more than 80% since late June. After reaching new local highs, the market is cooling down, but emotions remain strong as key players continue to accumulate.
A notable move is that World Liberty Financial (WLFI), a decentralized financial protocol and cryptocurrency company founded in 2024 and owned by US President Donald Trump, purchased another $2,010,000 worth of ETH just hours ago. This shows continued confidence in the potential for Ethereum rise, following several consecutive days of wallet activity tied to WLFI.
The timing of this purchase is important. Ethereum appears to be entering a new phase of expansion, supported by fundamental improvements, increased institutional interest and strong rebellious momentum. While short-term volatility can last, the ongoing accumulation from well-known investors adds weight to speculation that Ethereum can resume climbing after this integration.
Institutional Demand, Legal Clarity and Bulling Outlook for Macro-Strength Fuel Ethereum
Top analyst Ted Pillows reports that World Liberty Financial holds $281,000,000 worth of Ethereum. This massive accumulation reflects an increasing trend in institutional interest in ETH, which could continue to expand in the coming weeks. Pillow suggests that long-term assumptions remain structurally bullish as long as large entities like WLFI continue to win ETH.
Beyond institutional demand, the US’s recent legislative breakthroughs provide a fresh tailwind for Ethereum. The US Congress’ approval of the Genius and Clear Act shows a turning point in the regulatory environment. These bills aim to provide legal clarity and protection for decentralized financial and cryptographic protocols, and could unlock broader adoption and capital inflows into the space.
Meanwhile, the macroeconomic background has become more favorable. The fear of the recession and offensive tightening has faded, but stock markets, including the S&P 500 and Nasdaq, are setting their highest ever highs. This emotional shift has completely reduced risk aversion, allowing crypto assets like Ethereum to benefit from new appetites among institutional and retail investors.
ETH Price Analysis: Local Pull Back after a Sharp Rally
Ethereum (ETH) is currently trading around $3,595 after a notable rejection from the $3,860 resistance zone, as shown on the 12-hour chart. ETH reached the local top of under $3,900 before entering the corrective phase. Despite the pullback, the broader trend remains bullish, with all key moves at 50 SMA at $3,005, 100 SMA at $2,759 and 200 SMA at $2,469, down below the current price action.
The $3,742 level, serving as short-term support, has now been transformed into a pivot zone. Ethereum is trying to consolidate between $3,750 and $3,500, and bulls need to adhere to current levels to avoid deeper retracements. If this zone is not retained, the next strong support would be around $3,000, marking previous resistance in the May and June integration phase.
After the breakout, the volume decreases slightly, suggesting a temporary cooldown. However, as long as ETH exceeds $3,000 psychological and technical support, the uptrend remains. A break above $3,860 could trigger the next leg towards more than $4,000, but below $3,500 could lead to a retest of a demand zone of between $3,000 and $3,200.
Dall-E special images, TradingView chart
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