Ethereum Q3 bullish market outlook: ETF funds continue to flow in, ETH/BTC Exchange Rate strengthens

The market generally expects Ethereum (ETH) to experience a strong bullish trend in Q3 2025. One key signal is that the ETH/BTC Exchange Rate is continuously recovering, indicating that the trend of Ethereum relative to Bitcoin (BTC) is strengthening, and leading altcoins are showing independent bullish momentum. Another core factor supporting this optimistic outlook is that the Ethereum Spot ETF has recorded net inflows for 9 consecutive weeks, significantly solidifying its status as “Wall Street's darling.” Unlike tech stocks, the core value of Ethereum lies in its role as the underlying fuel for Decentralized Finance (DeFi) and its ability to generate stable returns through staking. The surge in demand for Ethereum from both institutions and retail investors has jointly driven up its price, but the critical psychological barrier of $3,000 still poses significant resistance. Given that Bitcoin (BTC) has entered a price discovery phase, the market expects a high likelihood that Ethereum's price will soon break new highs.

Technical Analysis Breakthrough Key Levels: Beware of Potential Gap Filling Demand

From the Ethereum weekly chart, the price has strongly broken through a bearish order block (cyan marked) located in the $2,800 USD area. This breakout action highlights the strong bullish sentiment in the market and the eager willingness of buyers to enter. However, this also means that swing traders may need to patiently wait for the price to retest the $2,800 USD support level to confirm its validity before considering establishing long positions. This rapid rise at the weekly level has left a price gap below, and from the perspective of technical analysis gap theory, there is a demand to fill this gap before the next round of upward movement.

Short-term momentum is strong, but beware of pullback risks (12-hour chart analysis)

Focusing on the shorter-term Ethereum 12-hour chart analysis, it can be observed that during the price rise in July, there was no sufficient consolidation in the $2,800 resistance area. This further reinforces the possibility that the price may experience a slight pullback to this demand area before potentially launching a new round of bullish trend. Currently, the RSI (Relative Strength Index) reading is at 77, indicating strong short-term bullish momentum. However, caution is needed for the possible formation of a bearish divergence in the coming days, which would be a short-term risk signal for traders to watch. On the other hand, the CMF (Chaikin Money Flow) is as high as +0.23, far exceeding the +0.05 threshold, clearly indicating that large amounts of funds are continuously flowing into the market, with buying pressure dominating. This strong funding support may help Ethereum quickly break through the key psychological resistance level of $3,000.

Liquidity Heatmap Guide: The target above $3,000 is clear, and a pullback to support is an opportunity.

Ethereum 1-Month Liquidation Heatmap clearly shows that there is a dense liquidity accumulation zone above the $3,000 mark. These Magnetic Levels often attract prices towards them, and Ethereum is currently gaining momentum aiming for these upper targets. In contrast, the liquidity band around $2,880 is relatively weak. While this position may temporarily pull the price down, the real market momentum and opportunities are clearly concentrated in the higher northern direction (upward).

Ethereum Trading Strategies: Be Prepared for Breakouts or Pullbacks

Overall, in the context of Bitcoin being in a price discovery mode, combined with the strength shown by Ethereum against various trading pairs and the support from various technical indicators, the possibility of Ethereum further rising is relatively high. Nevertheless, the scenario of retesting the $2,800 key support level still cannot be ruled out. Therefore, cryptocurrency traders need to be prepared for a dual trading strategy:

1. Direct Attack Scenario: Price continues to rise, hitting the $3,200 target.
2. Health Pullback Scenario: The price first retraces to the $2,800 area for support confirmation (Clean Retest), and then gains momentum before starting a breakout.