Ethereum (ETH) is showing strong signs of recovery, with multiple technical and fundamental factors aligning to suggest a major move upward. After a 24% surge from recent lows and a spike in on-chain activity, analysts are turning increasingly bullish for the second half of 2025.

Wallet Growth and Price Strength Confirm Demand

Ethereum’s active wallet count surged by 9.6% within two days, rising from 306,211 to 336,366, according to CryptoQuant data. This rise coincided with ETH’s strong recovery to $1,803–over 24% rebound from local lows. Analysts believe this surge in user activity reflects growing demand and deeper accumulation pressure.

CryptoQuant also notes that because Ethereum plays a central role in the broader altcoin ecosystem, a major breakout in ETH could spark wide rallies across DeFi, NFTs, and Layer 2 networks.

Developer Activity Signals Ongoing Ecosystem Leadership

Ethereum continues to dominate developer engagement, leaving competitors like Solana, Near, Cosmos, and Sui trailing behind. New data shows Ethereum developers contributed over 2,500 code commits recently, compared to fewer than 1,500 from rival blockchains.

Sustained developer energy points to future network upgrades, including enhancements in scalability, security, and innovation–all crucial pillars for decentralized finance and next-generation blockchain projects.

Technical Breakout Patterns Align with Bullish Outlook

Technicals also favor the bulls. A golden cross has recently formed, with the short-term moving average crossing above the long-term trendline–a textbook bullish indicator.

Ethereum has also broken through the lower boundary of the Ichimoku Cloud, suggesting that price momentum could continue upward. Immediate resistance levels are identified at $2,000, $2,400, and $2,800, setting key milestones for the next phase of the rally.

According to Bitcoinsensus, ETH’s monthly chart shows a massive bull flag pattern, often a precursor to major breakouts. TraderPA adds that Ethereum remains in a reaccumulation zone, predicting that ETH could reclaim $6,000 by the end of 2025 as market conditions further improve.

With technical setups aligning, development momentum remaining strong, and on-chain activity increasing, Ethereum looks primed for a major move higher in the months ahead.

In the meantime, Solana eyes major breakout–price targets point to $290 in 2025.