This surge comes amid strong institutional adoption, ETF inflows surpassing $1 billion since July, and growing network activity, signaling that Ethereum could be poised for a multi-thousand-dollar rally in the months ahead.

Ethereum Mirrors 2021 Rally Patterns

Ethereum’s recent price action has closely followed the trajectory seen during the 2021 surge. After a brief dip, buyers quickly stepped in to push the price higher, creating a bullish setup reminiscent of the past. This pattern, often referred to as a “dead cat bounce” followed by a retest, suggests that the market could be preparing for a larger upward move.

Ethereum is repeating its 2021 rally pattern, rebounding from $4K with bullish momentum toward a potential $10K surge. Source: @MerlijnTrader via X

Institutional participation this time around adds weight to the rally. Unlike 2021, when retail hype and DeFi activity drove the surge, the current market is benefiting from ETF inflows and growing adoption among professional investors. These factors could amplify gains if historical patterns repeat, potentially targeting multi-thousand-dollar price points.

Ethereum Flips $4K Resistance Into Solid Support

Ethereum has successfully converted the $4,000 resistance level into a new support zone. This is a classic bullish indicator, showing that buyers are confident at this price level. The shift has attracted renewed attention from traders who were previously skeptical, signaling that Ethereum may be entering a stronger phase of its cycle.

Ethereum flips $4K resistance into support, setting the stage for a bullish run toward $8K–$10K despite bearish sentiment. Source: @AkaBull via X

On-chain metrics support this optimism. Daily active addresses have risen 45% year-over-year to over 642,000, reflecting increased usage and engagement within the Ethereum network. Growing adoption and continued institutional inflows suggest that Ethereum’s foundation remains solid as it challenges higher price targets.

Technical Levels and Short-Term Outlook

Technically, Ethereum has regained strength at $4,182, near the 0.382 Fibonacci retracement, now immediate support. Nearby resistance is forming between $4,293 and $4,300, in accordance with the 0.5 Fib zone. Above this level, the path may clear towards $4,406 and $4,565 at the 0.786 retracement.

Ethereum completes ABC correction and breaks $4,200, signaling the start of a new bullish trend toward a potential all-time high. Source: Bullish_Traders on TradingView

Support levels remain relevant to near-term stability, with $4,182, $4,043, and $3,820 serving as backstops. A breakdown below these levels can trigger short-term weakness, but the momentum now, in addition to positive exchange and on-chain flows, is conducive to additional upside.

Exchange Flows Highlight Investor Confidence

Netflows from exchanges have been largely negative in recent months, indicating that investors prefer holding ETH in private wallets or staking platforms. This reduces the supply available for trading, which often supports upward price pressure. Significant withdrawals, including $145.54 million on October 1 near $4,286, further signal strong accumulation trends.

This trend suggests long-term confidence among Ethereum holders. Persistent outflows, coupled with limited selling pressure, align with the overall bullish undertone, showing that investors are positioning themselves ahead of potential higher price levels.

Final Thoughts

Ethereum is showing strength similar to that of its 2021 price surge. Flipping $4,000 to support, in addition to increased network adoption and institutional inflows, indicates ETH is well on its way to $10,000, regardless of continued market volatility.

Ethereum (ETH) was trading at around $4,326, up 5.65% in the last 24 hours at press time. Source: Ethereum Price via Brave New Coin

Traders need to watch key levels closely, particularly $4,300, as this will likely determine near-term direction. Coupled with solid technical structure and upbeat investor sentiment, Ethereum is one of the most closely followed cryptocurrencies over the next few months.