Ethereum Sets Sights on $6,700 as Bullish Wedge Breakout Leads to Fresh Momentum

ETH confirms breakout above $4,113 from a broadening wedge pattern, projecting a medium term target of $6,766.93.

ETH ETFs drew $402.5M on July 18, led by BlackRock’s ETHA, with total ETF assets reaching $18.37B, outpacing Bitcoin inflows.

Whale buys, 12.79% futures OI rise, and RSI at 85.36 signal strong momentum, though short term overbought risk remains.

Ethereum is advancing fast after confirming a key technical breakout that places its medium term target at $6,700. The digital asset recently surged past the $4,113 level, which marks a breakout above a long-standing horizontal resistance

This move comes as part of a larger right-angled descending broadening wedge visible on the weekly ETH perpetual futures chart. That structure typically forms when horizontal resistance meets descending support, creating expanding price ranges driven by buyer accumulation

According to chart data, this wedge began forming near $1,460 and stretched up to the $4,113 mark. Ethereum’s breakout from this pattern suggests rising momentum and an active shift toward a broader price expansion phase.

ETF Inflows Fuel Ethereum’s Price Surge

Ethereum ETFs have become a key driver of the latest rally. On July 18, ETH ETFs attracted $402.5 million in inflows, surpassing Bitcoin’s $363.4 million for the same day. Notably, BlackRock’s ETHA ETF secured 98% of these flows, pointing to increasing institutional interest

Furthermore, ETH ETF trading volume reached $2.8 billion that day, pushing total ETF assets to $18.37 billion. These ETF inflows have amplified market confidence, contributing to the breakout's strength and supporting the move beyond the $4,100 mark.

Whale Activity and Derivatives Markets

Alongside institutional interest, whale accumulation is reinforcing Ethereum's price action. Lookonchain reported that wallet 0x5A8E recently spent $50 million USDT to purchase 13,462 ETH at $3,715

Meanwhile, Ali identified $3,989 as Ethereum’s next key resistance, with $3,434 remaining as crucial support. Large ETH transactions exceeded $18 billion in the past 24 hours, highlighting renewed on-chain activity

In derivatives markets, futures open interest rose 12.79% month-over-month, reaching $786 billion. Leveraged positions also contributed to upside pressure, including trader James Wynn's 25x long position totaling $12.1 million.

Short Term Targets Hit as New Resistance Approaches

ETH’s price broke above the 23.6% Fibonacci retracement at $3,307 and is now aiming at the 38.2% level near $3,800–$4,000. However, this area also acts as resistance, with liquidations of nearly $1 billion possible near that zone

RSI is at 85.36, confirming strong momentum but also indicating overbought conditions. MACD histogram at +86.83 reflects bullish divergence, further validating the breakout strength. Analysts have flagged $4,113 as immediate support, while the full wedge height projects a price objective near $6,766.93.

Ethereum’s latest movement is driven by structural ETF demand, whale accumulation, and technical confirmation. Together, these factors align toward an ongoing bullish continuation.

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