TLDR
- Ethereum price successfully broke above $2,500 resistance and is now testing this level as support
- Daily transactions on Ethereum network are approaching all-time highs without corresponding gas fee spikes
- Bitcoin dominance has reversed from 58% peak, historically indicating potential altcoin rotation
- ETH is trading above $2,550 with next resistance targets at $2,600 and $2,650 levels
- Institutional accumulation continues with recent large withdrawals and acquisitions totaling hundreds of millions
Ethereum price has entered a fresh upward trend after breaking above the critical $2,500 resistance level. The second-largest cryptocurrency by market capitalization is now attempting to establish this price point as a new support base.
The $2,500 level has acted as a major resistance barrier for most of the recent quarter. Multiple bullish attempts were previously rejected at this price point. The recent breakout represents a shift in market structure for ETH.
Current price action shows Ethereum trading above $2,565 and the 100-hourly Simple Moving Average. The bulls managed to push the price above the 50% Fibonacci retracement level of the recent decline from $2,636 to $2,475.
Technical analysis indicates a break above a key bearish trend line with resistance at $2,520 on the hourly chart. This breakout has opened the door for further upward movement in the near term.
Network Activity Reaches New Heights
Ethereum’s on-chain activity is approaching historical peaks with daily transactions nearing 1.5 million per day. This figure is close to the all-time high achieved in 2021. The increase in network usage has not been accompanied by a surge in gas fees.
The sustained transaction volume indicates genuine user demand rather than speculative trading activity. The growth appears driven by consistent decentralized application usage and expanding developer adoption.
DeFi protocols, NFT marketplaces, and layer-2 solutions continue to drive network utilization. This organic growth pattern differs from previous periods of speculative mania that typically coincided with elevated gas costs.
Market Structure Shifts Favor Altcoins
Bitcoin dominance has reversed from its recent peak at approximately 58%. This level has historically marked cycle tops, with 2019 serving as a previous example. Reversals from such levels often precede capital rotation into altcoins.
The decline in Bitcoin dominance mirrors patterns that preceded previous altcoin rallies. Ethereum, as the leading altcoin by market capitalization and network usage, typically benefits from such rotations.
If Bitcoin dominance continues to decline, Ethereum’s relative strength may increase as investor focus shifts away from Bitcoin-led momentum. This scenario could support higher prices for ETH and other altcoins.
Chart analysis by Ted Pillows identifies the next structured resistance zone between $2,800 and $2,880. This area has previously stopped gains and marked final tops before wider reversals.
$ETH looking good flipping $2,500 resistance into support.
I think it’s time Ethereum visits the range-high this week. pic.twitter.com/pb8e8nLlNe
— Ted (@TedPillows) July 7, 2025
On the immediate upside, Ethereum faces resistance near $2,600, which aligns with the 76.4% Fibonacci retracement level. A break above this level could target the $2,620 and $2,650 resistance zones.
A clear move above $2,650 might send the price toward $2,720 resistance. Further upside breaks could lead to tests of $2,750 or even $2,800 in the near term.
Downside support levels include $2,550 as initial support, followed by the key $2,520 zone. A break below $2,520 could push the price back toward $2,500 support.
Institutional interest remains strong with recent large-scale movements. Data shows an $80 million withdrawal on Matrixport and a $517 million acquisition by SharpLink Gaming. On-chain data from CryptoQuant indicates record-breaking accumulation and staking activity in June.
The combination of network growth, declining Bitcoin dominance, and institutional accumulation creates conditions that have historically preceded altcoin rallies. Technical indicators including the hourly MACD and RSI support the current bullish momentum with both showing positive readings.
