Ethereum Maintains Bullish Market Structure Despite 6% Pullback and Volume Surge

Ethereum trades at $3,737, marking a 6.6% drop but showing sustained market strength above key structural support.

Network activity spikes with 1.6 million transactions daily, while gas fees remain low-a healthy indication of ecosystem use.

Analysts maintain a bullish outlook as Ethereum consolidates above $3,700 within a broader upward market cycle.

Ethereum experienced a 6.6% reversal daily, it is still in the larger uptrend, although recent trading indicates a short-term downturn in a larger period of bullish behavior, backed by increasing trading activity and strong network fundamentals.

Breakout Momentum and Market Reaction

According to CryptoELlTES, Ethereum has just confirmed its breakout above the long-term resistance line, confirming the structural change in trend. It transferred the market from an extended consolidation phase into a new expansion cycle, strongly supported by technical confirmation. This break was further fueled by a clear move above the multi-touch descending trendline and a successful retest near $4,000 that set it as the key support level for the upcoming sessions.

Source: CryptoELlTES via X

The structure of the asset now portrays higher highs and higher lows, which keep the bullish posture sustainable. In the short term, Ethereum’s price action has made a consolidation at the breakout area, creating a bullish pennant formation, which typically means continued rallies in price action. The hopes are mainly for price action to continue to close above $4,000 to try and keep the macro trend structurally sound.

Market projections reach as high as the $10,000–$12,000 range, calculated via Fibonacci extensions and measured breakout targets. This is supported by historical behavior, with Ethereum having demonstrated that rallies accelerate once old resistance flips into solid support. Given this continuity in pattern, if maintained, Ethereum could potentially appreciate long-term as the resumption in buying momentum takes hold.

Short-Term Pullback and Market Participation

As of writing, Ethereum trades at $3,737, a decrease by 6.62% in the last 24 hours. The digital asset had earlier touched a local high of $3,965 but found resistance that led to the current downward retracement. Market capitalization is at $451.09 billion, while trading volume increased by 23.3% to $44.1 billion, indicating strong participation despite the pullback.

The short-term structure on intraday charts takes the form of a controlled decline, lower highs and lows in a broader ascending framework. This price movement naturally indicates consolidation after an impulsive rally rather than a trend reversal. Moreover, the volume-to-market-cap ratio of 9.83% reflects liquidity in the market and efficiency in price discovery.

If Ethereum consolidates above $3,700, then it would confirm that there is active demand close to key support. The range of $3,650–$3,700 now forms a critical base for any potential recovery.Sustained activity above this level may allow price momentum to rebuild toward the $4,200 zone.

Network Fundamentals and On-Chain Resilience

Beyond market structure, Ethereum’s network activity remains notably strong. As shared by analyst Crypto Andy, daily transactions recently reached 1.6 million—the highest since October’s correction phase. This rise coincides with remarkably low gas fees, averaging just $0.01 for regular transfers and $0.15 for complex ones.

This combination of efficiency and high usage signals network robustness amid market volatility. Enhanced throughput, Layer-2 scaling efficiency, and consistent staking participation continue to attract developers and users alike. These metrics reflect sustained adoption, even during corrective phases.

Technical and on-chain indicators all indicate that Ethereum is in a stable market as the prices vary. The long-term framework of the asset is positive, supported by active liquidity, enhancing fundamentals, and transaction flow. The recent drawback seems to be a typical market cycle in a stable and growing ecosystem.

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