Ethereum has surpassed the $3,000 threshold for the first time in 2025, currently trading at $3,020.86. This marks a significant recovery from its nadir of $1,794 in April.
Source: Finance Newso
This achievement coincides with Bitcoin achieving new record highs above $118,400, fostering an environment conducive to Ethereum’s own upward momentum.
The breakthrough comes after a difficult eight-month decline, with Ethereum’s price dropping from around $3,298 at the beginning of the year to its mid-April low.
Data from past months illustrates a tumultuous path for Ethereum throughout 2025, with February ending near $2,900, a drop to $2,650 in March, followed by the steep plunge to $1,794 in April before the current resurgence.
Former President Trump’s recent comments on Truth Social, declaring that crypto is “through the roof,” have sparked a wave of buying activity across cryptocurrency markets.
Bitcoin price prediction as $BTC explodes past $113K record levels targeting $120K by tomorrow following Trump’s explosive crypto endorsement declaring it’s going “through the roof”. $120K tomorrow?#Bitcoin #ATH #Trumphttps://t.co/QZaaKfinrt
— Finance Newso.com (@Finance Newso) July 10, 2025
The timing of Trump’s endorsement, alongside a significant decline in the dollar’s value, has established favorable conditions for risk assets, with institutional investors viewing this as a sign of continued accommodative monetary policy.
The Ethereum rally comes at a time when Bitcoin has surged past $117,000, resulting in the liquidation of over $1.14 billion in leveraged positions within just one day.
A significant portion of this activity, totaling over $243 million in Ethereum liquidations, fueled a market-wide short squeeze that propelled both cryptocurrencies to new heights.
Dollar Collapse Fuels Crypto Rally Across Major Assets
Trump’s suggestion for a 300-basis-point interest rate cut has added momentum for alternative assets during a period when the dollar is experiencing its steepest decline since 1973.
The Dollar Index has dropped 10.1% year-to-date, currently trading 6.5 points below its 200-day moving average, marking the largest discrepancy in 21 years.
This drastic monetary intervention could drive inflation beyond 5%, while further depreciating the dollar by an additional 10% against the backdrop of a growing economy that boasts an annual growth rate of 3.8%.
Historical trends indicate potential risks associated with such aggressive policy measures, as the Federal Reserve has never imposed cuts exceeding 75 basis points outside of recessionary periods.
Analysis from the Kobeissi Letter anticipates significant asset price inflation following possible rate cuts, projecting gold prices could target $5,000 per ounce, alongside continued capital inflow to cryptocurrencies.
It’s official: President Trump is now calling for the first 300+ basis point interest rate cut in US history. This would be 3 TIMES larger than the 100 bps cut on March 15th, 2020, the largest in history. So, what happens if the Fed does this? Let us explain. (a thread) pic.twitter.com/k3Bo0ri1zY
— The Kobeissi Letter (@KobeissiLetter) July 9, 2025
Bitcoin’s correlation with a weakening dollar positions cryptocurrencies as leading beneficiaries of monetary debasement and currency decline.
Corporate treasury allocations are surging as firms seek refuge from currency devaluation, with over $1 billion directed toward crypto treasuries in just the past week.
This institutional shift, alongside retail enthusiasm, is intensifying buying pressure across the market.
Bitcoin exchange-traded funds have acquired $15 billion in BTC since mid-April, according to 10X Research, reflecting steady institutional demand that supports higher trading price ranges.
Trump’s favorable stance towards cryptocurrencies includes plans to establish a national crypto reserve and appoint pro-crypto officials in influential regulatory posts.
Technical Analysis Confirms Bullish Breakout Pattern
Analysis of Ethereum’s daily chart indicates a classic breakout scenario following prolonged consolidation within a descending channel pattern.
The cryptocurrency has been forming lower highs and lows, fluctuating between $4,000 and $1,500, before breaking decisively above the Ichimoku cloud resistance.
Source: SMART_MONEY_FLOW_SMF on TradingViews
The Ichimoku cloud breakout signifies a shift from bearish to bullish momentum, firmly reclaiming the crucial $3,000 mark.
Following this breakout, key support levels are established between $2,950 and $3,050, with projections targeting $3,600, $4,200, and $4,800.
Market analyst MerlijnTheTrader notes that a weekly perspective offers even stronger bullish confirmation, indicating a clean reclaiming of the $2,200 resistance with minimal pullbacks.
Current price activity reflects robust buying pressure across different timeframes, and projected paths indicate potential movement toward $10,000, based on typical bull market trends.
The backdrop of Bitcoin’s new highs above $117,000 further enhances Ethereum’s momentum, as historically, Ethereum has outperformed Bitcoin in percentage gains during parabolic runs.
With previous resistance levels at $4,000 marking significant historical relevance, they are now seen as the next major target in this bullish phase.
However, risks remain, particularly the inability to sustain levels above the $2,800 to $2,900 support range, which could signal a false breakout and potential retest of the $2,200 levels.
Nonetheless, the combination of current momentum and institutional interest suggests a continued upward trend toward initial targets around $4,000.
Based on the prevailing technical indicators and market dynamics, Ethereum appears poised for further appreciation toward the $3,600 to $4,200 range in the short term, with a chance for additional growth above $4,000 if Bitcoin’s upward trend continues.
The post Ethereum Breaks $3,000 for First Time in 2025 After Long Battle – $4,000 Next? appeared first on Finance Newso.
