Ethereum Rallies 6% as Momentum Surges: Performance, Trends, and Analysis

Ethereum Outpaces Bitcoin in 6% Momentum-Driven Surge

Ethereum (ETH) experienced an impressive 6% surge early Monday, exceeding Bitcoin's performance as investors gravitated toward more volatile crypto assets. Unlike a rally fueled by fresh capital inflows, this growth reflected momentum-driven trading behavior. By hitting an intraday peak of $4,254, Ethereum's movement stood in stark contrast to Bitcoin, which remained in a consolidation phase.

Recent reports highlight how Ethereum entered a recovery phase beginning Sunday, rebounding for five consecutive days after hitting its October 22 low of $3,711. The cryptocurrency has worked to erase losses incurred during early October's sharp liquidation event. By Monday, ETH traded at $4,171, marking not only a 5% day-over-day increase but also a 3.7% gain over the past week.

A significant milestone in this upward trend was Ethereum’s breakout above the critical $4,000 threshold, with current price movements testing resistance near the 50-day Simple Moving Average (SMA) of $4,236. Several market analysts have proposed the possibility of Ethereum climbing toward the $5,000 level in the near term. Supporting this outlook, on-chain analysis has revealed heightened wallet activity from large holders, signaling renewed acquisition interest among institutional investors.

Whale Buying Activity Suggests Institutional Confidence

A report from on-chain analytics firm Santiment reveals that high-value ETH holders have begun accumulating more tokens, reflecting renewed confidence in the asset’s prospects. Specifically, Santiment’s data indicates that whale and shark wallets—defined as addresses holding between 100 and 10,000 ETH—have repurchased approximately one-sixth of the ETH sold during the October 5 to October 16 window of heightened volatility.

This buying activity from institutional players and major market participants underscores the broader recovery trend and suggests growing sentiment that Ethereum could extend its rally beyond current levels.

Bull-Flag Pattern and Market Projections

Cryptocurrency analyst Jake Wujastyk has noted Ethereum’s bullish “flag” pattern remains intact, hinting at the asset's continued upward trajectory. Drawing comparisons to ETH’s movements during the 2020 bull market, Wujastyk argues that similar historical patterns could come into play within the next couple of weeks.

“The Ethereum bull flag remains in play,” stated Wujastyk in a recent post. “The parallels to 2020 are notable, and we’ll see if ETHUSD continues tracking projections for 2025.”

Bull flag patterns are widely recognized by technical analysts as indicators of robust upward momentum after brief periods of market consolidation. If Ethereum can decisively break through established resistance levels, this technical setup may solidify its trajectory toward a long-term bullish trend.

Short-term resistance levels for Ethereum have been pinpointed at $4,239, $4,756, and $4,955. However, macroeconomic factors—including the Federal Reserve's interest rate decision scheduled for October 29—may introduce volatility to the broader market, potentially influencing Ethereum’s progress beyond these resistance zones.

Ethereum’s ‘Fusaka’ Upgrade Adds Excitement

Adding to bullish sentiment, Ethereum is preparing to launch its “Fusaka” hard fork on the Houdini testnet. Scheduled for October 28 at 2:53 PM local time, the upgrade focuses on improving the network's efficiency and scalability. Analysts anticipate that once the mainnet implementation of Fusaka proceeds successfully, it could serve as a strong catalyst for future price momentum.

The Fusaka upgrade aligns with Ethereum’s broader ambition to strengthen its competitive positioning as demand for scalable blockchain solutions grows. If the technical update fulfills expectations, the network could see increased adoption alongside a sustained price rally.

Ethereum's Outlook Amid Macro Concerns

As Ethereum hovers near critical levels, its future trajectory will depend on a mix of technical strengths and broader market influences. Many analysts remain optimistic that consistent momentum—combined with supportive on-chain trends and network upgrades—may allow ETH to break through the $5,000 mark in the coming weeks.

Still, all eyes are on the Federal Reserve’s upcoming policy decision, which could introduce external volatility and shape short-term market dynamics. Ethereum’s recent recovery, coupled with signals from institutional buyers and strengthened technical indicators, suggests it may be well-positioned to navigate these challenges while maintaining upward potential. Crypto watchers and investors are bracing for sharp movements following the Fed’s announcement.