Ethereum Breaks Falling Channel as RSI, MACD Turn Up and Institutions Accumulate

Published: 2025-12-06 11:46:00 |

Ethereum (ETH) has broken above a multi-week falling channel on the 2-day chart, with RSI bouncing from ~40 and MACD beginning to curl upward—signals traders associate with renewed bullish momentum. Analysts point to measured targets of $3,600 initially, with extended targets up to $4,350–$5,100 if support holds and volume confirms the move. The ETH/BTC pair also cleared a multi-month descending trendline, aiming to retest the 0.05 BTC resistance, suggesting rotation from Bitcoin into Ethereum. On-chain and institutional data add weight: Glassnode-style metrics and reported network activity rose ~15% week-over-week; Bitmine (linked to Tom Lee) reportedly bought 41,946 ETH (~$130.8M). Open interest on derivatives rose ~12% in 48 hours and ETH-focused ETF inflows reached ~$250M in the past month. TVL in DeFi on Ethereum surpassed $50B per DefiLlama. Key levels to watch: support near $3,200 (breakout hold) and resistance targets at $3,600, $4,350 and $5,100. Traders should watch volume, derivatives open interest, and confirmation of higher highs for validation. Risks include false breakouts and broader market volatility despite supportive technicals and institutional accumulation.

Bullish

The article combines technical breakout signals (2-day falling channel breakout, RSI rebound from ~40, MACD curling up) with supportive on-chain and institutional flow data (reported 41,946 ETH buy, +15% network activity, rising open interest, ETF inflows). Historically, similar channel breakouts accompanied by rising volume and institutional accumulation have preceded sustained rallies in ETH. Short-term impact: likely increased buying interest and volatility as traders test breakout validity; watch for confirmation via volume and higher highs. Medium-to-long term: if institutions continue accumulating and network activity remains strong, ETH could see sustained appreciation toward the stated targets. Risks: false breakouts, a reversal in broader crypto market (e.g., BTC weakness), or profit-taking that fails to confirm higher highs would negate the bullish scenario. Overall catalyst mix (technical + flows) skews the expected market response bullish, but confirmation is required to mitigate typical breakout failure risk.