Ethereum's recent 51% rally in July 2025, pushing its price to $3,800, has sparked comparisons to the Dow Jones' historic 1980 bull market. Analysts have identified a textbook expanding diagonal formation, a pattern that previously preceded a 245% surge in ETH between 2022 and 2024. According to Elliott Wave principles, this pattern suggests a potential final wave that could propel ethereum to $8,000. The surge in institutional demand is evident, with $1.18 billion worth of ETH withdrawn from exchanges, signaling strong confidence in the asset's future growth. This article delves into the technical and fundamental factors driving Ethereum's bullish momentum and explores the implications for investors.
Ethereum Mirrors Historic Bull Run Pattern as Institutional Demand Surges
Ethereum's 51% July rally to $3,800 has drawn comparisons to the Dow Jones' 1980 bull market structure, with analysts identifying a textbook expanding diagonal formation. The pattern, which previously preceded a 245% ETH surge between 2022-2024, suggests a potential final wave targeting $8,000 according to Elliott Wave principles.
Institutional activity has intensified with $1.18 billion worth of ETH withdrawn from exchanges this month. ETF inflows reached $5.5 billion total, including nearly $1 billion in the past week alone. The ascending triangle formation now faces a critical test at the $4,000 resistance level.
Market structure echoes the final stages of historic bull markets, where broadening patterns typically precede explosive moves. Current derivatives activity and spot market demand indicate growing Wall Street participation in what may be Ethereum's last major rally of this cycle.
Ethereum Price Prediction – $4,096 Breakout or Pullback to $3,525?
Ethereum's price rally has surged 22% in a week, peaking NEAR $3,856 before a 4.18% dip sparked short-term uncertainty. Regulatory jitters and ETF outflows linger, but onchain data suggests this is a healthy cooldown, not a reversal. The $2,520 cost-basis cohort is taking partial profits, yet nearly 2 million ETH remains unmoved—a sign of enduring bullish conviction.
Glassnode's heatmap reveals strategic rebalancing: holders trim positions but maintain Core exposure, while new buyers absorb sell pressure. ETH trades at $3,635 with RSI retreating from overbought territory to 51, signaling tempered momentum. The battle between profit-taking and accumulation sets the stage for either a $4,096 breakout or a retreat to $3,525 support.
Ethereum Boosts Its Gas Limit to Enhance Network Efficiency
Ethereum's network has undergone a significant upgrade with its gas limit increased by 25% to 45 million units, up from 36 million. The adjustment, implemented in block 22,968,004, received approval from nearly half of the network's validators. This change enhances transaction capacity by allowing more computational power per block, directly improving scalability.
The gas limit adjustment process requires no hard fork—validators simply propose new block configurations. Once support exceeds 50%, the limit automatically updates. Previous increases saw the limit double from 15 million in 2021 to 30 million, then rise to 36 million in February. Discussions are already underway for further hikes to 60 million short-term and 150 million long-term, potentially enabled by the upcoming Fusaka hard fork (EIP-7935).
Growing demand for Ethereum's block space drives these changes. The network continues evolving to meet scalability needs while maintaining security—a balancing act critical for its long-term viability as a decentralized platform.
SharpLink Gaming Acquires 79,949 Ethereum in Largest Weekly Crypto Purchase
SharpLink Gaming, Inc. has dramatically expanded its Ethereum reserves, reporting a 29% week-over-week surge in holdings. The U.S.-listed company now holds 360,807 ETH as of July 20, adding 79,949 tokens at an average cost of $3,238 each—its largest single-week acquisition since launching its crypto treasury initiative.
The firm's digital treasury strategy, unveiled in June 2025, has positioned it as the world's largest corporate holder of Ethereum. Beyond purchases, SharpLink has earned 567 ETH through staking rewards, demonstrating active participation in Ethereum's proof-of-stake network.
A newly introduced 'ETH Concentration' metric tracks shareholder value in real terms, showing a 53% increase to 3.06 ETH per 1,000 diluted shares since the program began. The growth reflects a deliberate strategy to optimize treasury performance through blockchain assets.
