Ethereum aims for $3625 rebound with Triangle Breakout, $16K price outlook on the horizon

epresents a critical moment for the cryptocurrency as it hovers near the $3,625 support level. The recent pullback from the July 29 high of $3,940 has left analysts unsure whether this is a temporary correction or the beginning of a larger breakout.

Technical indicators suggest that Ethereum is facing downward pressure, with the price falling below key levels on multiple timeframes. Momentum indicators like the Directional Movement Index and RSI confirm seller dominance, while MACD remains bearish. CoinGlass data shows a net outflow of $113.19 million on August 1, indicating increased exchange withdrawals and declining spot interest.

Analysts are closely watching the $3,625 support level, as a break below could lead to further downside towards $3,594 and $3,307. However, reclaiming key resistance levels at $3,700, $3,784, and $3,899 may signal a reversal in momentum and pave the way for a bullish rally. Volume spikes and RSI divergences could provide early signs of a potential bottom.

Looking ahead, some analysts believe that Ethereum is on the verge of a major breakout. On-chain data and macro-structural indicators suggest that the current correction may be a temporary pause in a larger bullish trend. A breakout above the $4,000 resistance level could propel Ethereum towards $15,000-16,000, driven by factors such as ETF inflows, capped issuance, institutional interest, and Ethereum’s utility in Layer 2 networks and asset tokenization.

Compared to Bitcoin, Ethereum is seen as having stronger fundamentals and potential for outperformance in the second half of 2025. Analysts like Michaël van de Poppe anticipate a short-term top near $4,000 before a broader rally resumes. Ethereum’s Layer 2 adoption, staking fundamentals, and moderate gas fees all point towards a healthy and expanding ecosystem.

In conclusion, the outlook for Ethereum’s price remains divided as it navigates a critical juncture. While short-term indicators suggest downward pressure, long-term factors point towards a potential breakout towards $15,000-16,000. The evolving landscape of Ethereum’s ecosystem, including Layer 2 adoption and staking rewards, continues to support investor confidence in the cryptocurrency’s future growth.