Ethereum is undergoing a healthy correction following an explosive multi-week rally that saw its price surge by more than 80% since late June. After reaching new local highs, the market is cooling down, but sentiment remains strong as major players continue to accumulate.
In a notable move, World Liberty Financial (WLFI)—a decentralized finance protocol and cryptocurrency company founded in 2024 and owned by US President Donald Trump—purchased an additional $2,010,000 worth of ETH just hours ago. This follows several consecutive days of wallet activity tied to WLFI, signaling continued confidence in Ethereum’s upside potential.
The timing of this purchase is key. Ethereum appears to be entering a new expansion phase, supported by improved fundamentals, growing institutional interest, and strong DeFi momentum. While short-term volatility may persist, the ongoing accumulation from high-profile investors adds weight to speculation that Ethereum could resume its climb after this consolidation.
Institutional Demand, Legal Clarity, and Macro Strength Fuel Ethereum Bullish Outlook
Top analyst Ted Pillows reports that World Liberty Financial now holds $281,000,000 worth of Ethereum. This massive accumulation reflects a rising trend of institutional interest in ETH, which could continue to expand in the weeks ahead. Pillows suggests that as long as large entities like WLFI keep acquiring ETH, the asset’s long-term outlook remains structurally bullish.
Beyond institutional demand, recent legislative breakthroughs in the US are providing fresh tailwinds for Ethereum. The approval of the GENIUS Act and the Clarity Act by the US Congress marks a turning point in the regulatory landscape. These bills aim to provide legal clarity and protections for decentralized finance and crypto protocols, potentially unlocking broader adoption and capital inflows into the space.
Meanwhile, the macroeconomic backdrop has turned more favorable. Fears of recession and aggressive tightening have faded, while equity markets, including the S&P 500 and Nasdaq, are setting new all-time highs. This shift in sentiment is reducing risk aversion across the board, allowing crypto assets like Ethereum to benefit from renewed appetite among institutional and retail investors.
ETH Price Analysis: Local Pullback After Sharp Rally
Ethereum (ETH) is currently trading around $3,595 after a notable rejection from the $3,860 resistance zone, as shown in the 12-hour chart. ETH reached a local top just below $3,900 before entering a corrective phase. Despite the pullback, the broader trend remains bullish, with all key moving averages trending upward—50 SMA at $3,005, 100 SMA at $2,759, and 200 SMA at $2,469—well below the current price action.
The $3,742 level, which acted as short-term support, has now turned into a pivot zone. Ethereum is attempting to consolidate between $3,750 and $3,500, with bulls needing to defend current levels to avoid a deeper retracement. If this zone fails to hold, the next strong support lies around $3,000, which marked previous resistance during the consolidation phase in May and June.
Volume has declined slightly after the breakout, suggesting a temporary cooldown. However, as long as ETH stays above the $3,000 psychological and technical support, the uptrend remains intact. A break above $3,860 could trigger the next leg toward $4,000 and beyond, while a drop below $3,500 could lead to a retest of the $3,000–$3,200 demand zone.
Featured image from Dall-E, chart from TradingView
