Ethereum (ETH) is gaining traction again, with analysts pointing to a combination of technical and on-chain metrics that suggest a potential 40% price surge in the near term. With increased smart contract deployments, rising stablecoin inflows, and record-high staking levels, Ethereum’s fundamentals appear stronger than ever.

Whale Accumulation and Smart Contract Surge Spark Momentum

A massive 30,000 ETH OTC purchase worth $75.6 million recently caught market attention. The last time this buyer entered the market at such scale, ETH rallied 40% within two weeks. Now, traders are watching closely to see if history might repeat.

This move coincides with a dramatic spike in developer activity: over 250,000 smart contracts were deployed on Ethereum in a single day—the highest since the peak of the 2021 bull market. This surge suggests a wave of new dApps, automation tools, and tokens in development, often a precursor to greater on-chain utility and bullish sentiment.

Stablecoin Capital Flows Highlight Ethereum’s DeFi Strength

In the past week, more than $2 billion worth of stablecoins (mainly USDT and USDC) flowed into Ethereum—more than any other chain. This influx of liquidity not only reflects user preference for Ethereum as a settlement layer but also primes the network for increased DeFi activity, lending, and protocol usage.

Historically, when liquidity surges via stablecoins, Ethereum experiences heightened trading volumes and rising demand for gas—often pushing prices higher in the weeks that follow.

Staking and Layer 2 Adoption Reinforce the Bullish Case

Ethereum staking has reached new all-time highs, reducing circulating supply and signaling long-term confidence among institutional holders. At the same time, Ethereum’s Layer 2 ecosystem—including Arbitrum, Optimism, and Base—continues to expand rapidly, locking billions in value and enhancing Ethereum’s scalability and throughput.

These developments not only tighten ETH’s liquid supply, but also strengthen its utility, supporting the case for price appreciation.

Technical Setup Targets $4,000 Breakout

From a charting perspective, ETH is forming a textbook bull flag pattern between $2,450 and $2,750. According to analyst Trader Tardigrade, a close above this resistance channel would confirm the continuation of the uptrend, with $4,000 as the next major target.

ETH has also printed a golden cross on the daily chart—a bullish formation where the 50-day moving average crosses above the 200-day, further validating the bullish scenario. ETF inflows topping $238 million and growing long-term holder accumulation round out the case for further upside.

Currently trading at $2,644, Ethereum is showing strong volume recovery and technical alignment. If momentum persists, a breakout toward the $3,000-$4,000 range could be just ahead.

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