Daily Recap: ETH Surges on High Volume and Bullish Sentiment
On July 18, 2025, Ethereum posted one of its strongest daily performances in recent months, recording a price increase between 6% and 8%. The rally lifted ETH above the psychologically important $3,600 level, with intraday fluctuations between $3,365 and $3,674. This upward move brought Ethereum’s market capitalization to approximately $435 billion.
Trading volume also increased substantially, exceeding $57 billion within 24 hours. The surge in volume confirms that the rally was supported by broad market participation rather than low-liquidity spikes. While Bitcoin remained relatively unchanged, hovering near $118,000 with minimal movement, Ethereum stood out among major cryptocurrencies, contributing significantly to overall market momentum. ETH’s +7% daily gain helped push the total crypto market capitalization toward the $4 trillion mark.
Investor sentiment has shifted in a clearly bullish direction. Capital rotation into altcoins, led by Ethereum, signals growing appetite for risk. Market confidence is also reflected in sentiment gauges such as the Fear & Greed Index, which has moved toward the “Greed” zone, indicating a risk-on environment and increased speculative activity.
Technical Analysis: Key Levels and Overbought Signals
From a technical perspective, Ethereum broke through several resistance zones, most notably the $3,500 level. The session high near $3,670 confirms a breakout from a multi-week consolidation phase, establishing a new higher trading range for ETH. This technical shift suggests the potential for trend continuation in the short term.
However, overbought signals are beginning to emerge. The 14-day Relative Strength Index (RSI) climbed above 83, which is well into the overbought territory and could point to a short-term cooling-off period. The MACD (Moving Average Convergence Divergence) continues to reflect strong momentum, with positive divergence sustained since early July.
Ethereum is currently trading well above its short-term exponential moving averages. The 20-period EMA sits at approximately $3,323, and the 50-period EMA is around $3,103. The sharp distance between current prices and these indicators underlines the strength of the uptrend but also leaves ETH vulnerable to volatility-driven corrections.
Support has now formed around the former resistance zone at $3,325, with additional support between $3,100 and $3,150. On the upside, resistance levels include the round number at $4,000, followed by $3,850 and $4,100 — the latter coinciding with a full Fibonacci retracement and a price top from early 2024. Bollinger Bands have widened significantly, and ETH is currently trading along the upper band, suggesting increased price swings and market momentum.
Macro and On-Chain Drivers: ETF Inflows and Regulatory Tailwinds
Ethereum’s rally is being driven not only by technical momentum but also by a confluence of macroeconomic and blockchain-specific catalysts. In Washington, D.C., the House of Representatives passed several bills aimed at creating a clearer regulatory framework for digital assets. Among them was the GENIUS Act, focused on regulating stablecoins and promoting innovation in blockchain finance. President Trump is expected to sign the legislation into law in the coming days, reinforcing the administration’s pro-crypto stance and improving regulatory clarity.
These developments have been well-received by institutional investors, who are responding with renewed capital allocations. Ethereum-based ETFs have seen substantial inflows in recent weeks. BlackRock’s iShares Ethereum Trust reportedly attracted nearly $500 million in a single day, with total inflows exceeding $2.2 billion so far in July. These figures underscore growing institutional confidence in Ethereum as a long-term asset.
Large-scale investors are also increasing their direct ETH holdings. BitMine Immersion, for example, now controls more than $1 billion worth of ETH and has publicly announced intentions to further expand its exposure. These moves have prompted comparisons to Bitcoin’s institutional accumulation cycles in 2020 and 2021.
On-chain activity supports the bullish thesis. Ethereum network fees have doubled in the past week, reaching a daily average of $12.4 million. The network’s burn rate, fueled by EIP-1559, has also increased, effectively tightening supply as usage grows. Additionally, open interest in ETH futures reached a new all-time high near $46 billion — a 64% increase since the end of June. Ethereum’s share of total crypto market capitalization now exceeds 11%, reflecting its growing dominance and utility within the ecosystem.
2–3 Day Outlook: Cautious Optimism Amid Rally Continuation
The short-term outlook for Ethereum remains constructive, provided the asset can maintain support around the $3,325 level. As long as this key zone holds, further upside toward $3,800 is plausible. A push into the $4,000–$4,100 range is increasingly likely, especially given the lack of historical resistance in that region.
That said, traders should remain aware of the risks. Overbought technical indicators and expanding volatility bands suggest that a short-term pullback or sideways consolidation is possible. A retracement toward the $3,300–$3,500 area would not invalidate the bullish trend but could serve as a healthy pause. A breakdown below $3,325, however, might open the door to a retest of deeper support near $3,100.
Institutional demand and strong ETF inflows continue to provide a robust foundation for Ethereum’s rally. Unless broader macro conditions shift dramatically, dips are likely to be met with buying interest. The trend remains bullish into the weekend, with momentum, on-chain signals, and regulatory developments aligning in Ethereum’s favor.
Sources:
Cointelegraph.com
Investopedia.com
Moneycontrol.com
CryptoDnes.bg
CoinEdition.com
