ETH has been climbing fast, nearing $3,500 for the first time in six months. But what’s really behind this price move?
Ethereum Nears $3,500 (Short-Term Price Target)
Ethereum has broken out above key resistance and is now eyeing the $3,730 level, with strong upward momentum fueled by institutional demand.
With ETH trading above its 50-day moving average and RSI nearing overbought territory, the next major target appears to be the $4,100 zone.
Ethereum’s recent price jump isn’t just about hype — it’s being fueled by real institutional money and strong network activity.
In the last 7 days, ETH has surged over 25%, reaching a six-month high of $3,481. This isn’t a random move — it’s backed by record-breaking inflows into spot Ethereum exchange-traded funds (ETFs), along with growing confidence in Ethereum’s long-term role in crypto finance.
Ethereum’s rally is being driven by large institutional investments, especially through new spot ETFs, along with signals from key technical indicators like RSI.
Record Inflows Into Ethereum ETFs: The Big Money Is Moving In
One of the biggest drivers behind Ethereum’s rally is massive ETF inflow. In just one day, more than $727 million flowed into spot Ethereum ETFs — with BlackRock alone contributing half of that total.
Over the past five days, these ETFs have pulled in $1.76 billion, now holding about 4% of all ETH in circulation. These numbers are no longer just retail-driven. As one analyst put it, “this is big boy money.”
ETF inflows typically reflect long-term investment conviction. When institutional investors pour billions into ETH, it’s a strong signal that they see Ethereum as a valuable asset, not a short-term trade.
Spot Ethereum ETFs are drawing huge institutional interest. This strong demand is helping to support — and possibly push up — the price of ETH.
Technical Signals Point Toward Even Higher Prices
It’s not just ETFs fueling the bullish case. Technical indicators are flashing green as well.
Ethereum’s Relative Strength Index (RSI) — a key momentum signal — flashed a buy signal at the 40 level back in April. Historically, this has preceded major price rallies for ETH.
According to traders watching these trends, Ethereum could be setting up for a long-term target between $7,000 and $10,000 during the current cycle, possibly by 2025.
RSI buy signals and past market patterns suggest ETH might be heading much higher.
Why is Ethereum Rising
May 29, 2025 update:
Ethereum’s price is going up today due to a mix of technical upgrades, bullish investor sentiment, global macro developments, and wallet innovations. Five biggest reasons for today’s ETH rally;
1. Pectra Upgrade Restores Investor Confidence
- Ethereum’s major Pectra network upgrade went live recently.
- This upgrade increases the max ETH staking limit to 2,048 ETH and improves wallet usability.
- Investors see this as a big step toward a more scalable and secure Ethereum ecosystem.
- Result: More than 20% price spike, ETH’s biggest one-day gain since 2021.
Context: The Pectra upgrade is a confidence booster. It shows Ethereum is focused on long-term growth and tech innovation, making it more appealing for both retail and institutional investors.
2. Ethereum Finally Breaking Out Toward $3,000
- On-chain data shows a strong wallet activity and stats.
- Whales accumulation is growing
- Technical indicators point to ETH moving toward the $3,000 level.
Context: Analysts believe Ethereum is ready for the next leg up. Data suggests smart money (big investors) is moving in, pushing ETH toward a long-awaited breakout level.
3. Wallet Innovation: EIP-7702 Introduced
- Vitalik Buterin proposed EIP-7702, a new standard for Ethereum wallets.
- It aims to improve user experience by making wallet accounts more flexible and secure.
- Early integration by top wallets is already underway.
Context: Improved wallet features mean better adoption for Ethereum, especially among mainstream users. This creates a long-term bullish outlook for $ETH.
4. Global Market Sentiment: ETH Leads Rally After US-UK Deal
- ETH jumped 15% after positive news about a new US-UK trade agreement.
- The deal boosts global investor confidence in risk assets, including crypto.
- Ethereum led the rally among top cryptocurrencies.
Context: New US-UK trade agreement macroeconomic confidence is helping crypto. Ethereum, being one of the strongest projects, naturally becomes a favorite for investors during such rallies.
5. Spot ETF Anticipation and Institutional Demand
- Rumors around Ethereum Spot ETFs continue to spread.
- Institutions are preparing for large-scale ETH investments.
- Combined with bullish sentiment and the Pectra upgrade, this fuels further gains.
Context: Based on Institutional interest Ethereum could see even bigger inflows, similar to what happened with Bitcoin earlier this year.
📉 Technical Indicators & Ethereum Price Prediction 2025
- RSI (Relative Strength Index) is nearing 70 — bullish but not yet overbought.
- MACD shows strong upward momentum.
- Volume has surged, confirming the strength of the move.
- Ethereum is trading above key moving averages (50-day and 200-day).
Price Prediction: If momentum continues, ETH could retest $3,000 soon. A sustained move above $3,000 could open the door to $3,400 or even $3,800 in Q2 2025.
Conclusion: Why Ethereum Price Is Going Up Today
Ethereum’s price is rising due to a perfect storm of positive news: major network upgrades, bullish investor behavior, growing institutional interest, wallet improvements, and macroeconomic tailwinds. All these elements together create strong buying pressure and investor optimism.
If you’re wondering why Ethereum price is going up today — it’s not just hype. It’s real, tech-driven growth backed by fundamentals and smart money.
