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The price trend of Ethereum in 2025 is attracting the attention of analysts because a megaphone formation, also referred to as a broadening formation, can be observed on the weekly chart. This technical configuration,where upward-bound price movements increase in magnitude with increasing highs and decreasing lows is considered a possible bullish reversal. Analysts point out that a confirmed breakout over $5,000 may lead to a liquidation of almost $5 billion short positions, which will lead to a rush towards $10,000.
Data from CoinGlass suggests that such a move would remove a significant layer of resistance and could accelerate market momentum. However, the inability to break out may result in Ethereum returning to the support of the 12-week simple moving average, which is approximately 3,500 or less. Nevertheless, these risks do not exclude the fact that the megaphone pattern visible to the market participants is an indicator of significant price changes in the future.
Increasing institutional adoption also contributes to Ethereum's bullish case. Exchange-traded funds (ETFs) that track Ethereum have gained net inflows of $13.6 billion as of August 27, 2025, whereas Bitcoin ETFs have recorded net outflows of $800 million over the same timeframe. The popularity of Ethereum ETFs is based on their staking returns of 4.5 to 5.2 % and their deflationary supply framework. These attributes have made Ethereum a favorite digital asset in long-term portfolio allocation.
Regulatory progress has provided added momentum. Ethereum has been designated as a corporate treasury asset under the CLARITY and GENIUS Acts, and 2.7 million ETH is decentralized across 64 institutions valued at more than 10 billion. This organizational culture highlights the utility of Ethereum as a solution to decentralized finance (DeFi) and tokenizing real-world assets.
Also Read: Crypto Prices Today: Bitcoin Price at $111,452, Ethereum Slips 2.22% to $4,472, XRP Down 2.43%
The macroeconomic factors in 2025 have also assisted Ethereum’s rise in the crypto market. The US Federal Reserve has kept its benchmark at 4.25%-4.50%, which keeps Ethereum staking returns (between 3% and 14 percent) among the best-performing risk-on instruments compared to traditional fixed-income instruments.
Scalability and efficiency have been enhanced at the same time through network upgrades. The deployment of the EIP-4844 and the Pectra/Dencun updates have minimized transaction charges by 90% improving the usability of DeFi and cross-chain interoperability. The improvements have led to a 38% growth in DeFi Total Value Locked in Q3 2025, with 60% of Ethereum network activity currently being served through Layer 2 solutions.
