The Ethereum forecast just turned bullish as the world’s second-largest crypto asset breaks above a key technical level near $2,600. After weeks of consolidation between $2,300 and $2,500, Ethereum (ETH) is showing signs of upward momentum, triggering fresh optimism among traders.
Recent price action suggests that ETH may be preparing for a move toward $2,900, especially as technical indicators flip positive and on-chain metrics show renewed strength in Ethereum’s DeFi ecosystem. The $2,600 resistance which had previously rejected multiple rallies was breached with increased volume, giving weight to this week’s Ethereum forecast.
Price Action: ETH Breaks $2,600 as Momentum Builds
On the daily chart, ETH is currently trading at $2,602 on Bitstamp, having gained +1.19% in the last 24 hours. The breakout candle has closed above the recent range, supported by growing bullish volume (4.86K ETH traded). If buyers maintain pressure, the next resistance lies around $2,879, a local top formed in early June.
Source: Trading View
Several technical indicators now support a bullish Ethereum forecast:
- The Relative Strength Index (RSI) is approaching 60, indicating room to run.
- The 50-day EMA is turning upward and could cross the 200-day EMA in the coming days — a classic bullish crossover signal.
- MACD histogram is showing increasing green bars, confirming bullish momentum.
Ethereum Forecast Strengthened by DeFi Recovery
Beyond price charts, the broader Ethereum forecast is being reinforced by improving fundamentals in the DeFi space. According to DeFiLlama, Ethereum’s Total Value Locked (TVL) has stabilized above $60B, recovering from the sharp declines seen earlier in Q2.
Source: DefiLlama
As the chart shows, the ETH price (yellow line) has historically correlated strongly with TVL (blue line). The current rebound in TVL suggests a renewed interest in Ethereum-based protocols, which often precedes strong price performance.
This correlation supports a positive Ethereum forecast for July, particularly if the TVL trend continues to climb in parallel with ETH reclaiming key resistance levels.
On-Chain Signals and Ethereum’s Market Position
On-chain data also reflects a more optimistic Ethereum forecast:
- Active addresses and gas usage have remained stable despite recent price dips, indicating consistent network activity.
- Exchange balances are declining, suggesting accumulation.
- Institutional sentiment has improved following renewed ETF discussions and staking-related developments.
Ethereum’s role in the broader Web3 and DeFi infrastructure remains unmatched. With Ethereum 2.0 upgrades now fully operational and rollup ecosystems growing, many analysts believe ETH could outperform Bitcoin in the next bullish cycle.
Final Thoughts: Ethereum Forecast Points to $2,900 Breakout
This week’s Ethereum forecast appears increasingly bullish. Technical patterns, DeFi fundamentals, and on-chain metrics are all aligning toward a potential breakout to $2,900, with further upside possible if macro sentiment improves.
While short-term volatility is always a risk, Ethereum’s strong ecosystem and growing utility continue to underpin its value. If momentum continues, $2,900 may just be the beginning of a broader rally for ETH this summer.
