Why is Ethereum up today (July 16)?
Ethereum breaks key Fibonacci level, targets $3,524 amid rising network activity
Ethereum has extended its July rally, now trading around $3,172 after securing a 6.7% weekly gain and breaking through the critical 0.618 Fibonacci retracement at $3,067.
This reclaim has energized bulls, setting sights on the next technical targets — the 0.786 level at $3,524 and the previous cycle high near $4,106. Structurally, Ethereum is holding above its long-term ascending trendline from 2022, with additional support from the breakout above the neckline of a “cup and handle” formation around $3,050–$3,100. These technical confirmations signal strong market conviction and validate the bullish trend. As long as ETH sustains above the reclaimed zone on any pullbacks, the upward momentum is likely to continue.
Ethereum network activity surges to 2021 highs
On-chain fundamentals are reinforcing Ethereum’s price momentum, with daily transactions approaching 1.5 million — levels not seen since 2021. The rise in network usage underscores renewed interest across DeFi and NFT sectors and comes amid Ethereum’s major technical upgrades like the shift to Proof-of-Stake and the growth of layer 2 solutions.
Ethereum price chart. Source: CoinMarketCap
Networks like Base, Optimism, and Arbitrum have slashed gas costs, making Ethereum more accessible and cost-effective for users. Platforms such as Uniswap and Blur are registering higher trading volumes, pointing to a wider revival in Web3 engagement. With transaction costs lower and network activity climbing, Ethereum’s user base is expanding, drawing more developers and liquidity back into the ecosystem.
Institutional tailwinds strengthen ETH’s long-term outlook
Institutional demand is adding fuel to Ethereum’s rally, bolstered by growing interest in tokenization, staking, and spot ETH ETFs. The anticipation of regulatory clarity around stablecoins and crypto ETFs has encouraged long-term investment flows. According to analyst Anton Kharitonov, bullish catalysts include Congress advancing pro-crypto legislation, Peter Thiel’s exposure to ETH-focused mining firms, and increasing ETH accumulation by whales.
Kharitonov stated:
"Ethereum has entered a phase of steady growth. It is the leading altcoin that provides the foundation for the onset of a full-fledged altseason."
Furthermore, Ethereum’s staking participation has reached all-time highs, a sign that investors are opting to lock up assets rather than sell. Combined with strong futures positioning and a surge in tokenization use cases, Ethereum appears well-positioned for continued growth through the rest of 2025.
Recently we wrote that Ethereum extended its July rally on Tuesday, trading around $3,172, marking a 6.7% weekly gain and decisively breaking past a key Fibonacci resistance.
