Ethereum (ETH) Price Analysis: DXY's Inverse Correlation with ETH Continues to Strengthen

Ethereum’s inverse correlation with the U.S. Dollar Index (DXY) continues to strengthen.

The inverse correlation between Ethereum (ETH) and the U.S. Dollar Index (DXY) continues to strengthen, potentially setting the stage for a remarkable ETH rally if the historical pattern of DXY peaks repeats.

As pointed out by analyst Crypto Uncle, in his recent post, we could be witnessing the beginning of a parabolic move in 2025.

Importantly, throughout history, whenever the DXY topped, it was followed by a bottom in Ethereum. With the DXY showing weakness and DXY peaks aligning with ETH lows (blue line), it appears that ETH is now forming a higher low in a broader accumulation range.

This observation is a crucial technical indicator that often precedes a bullish breakout.

In other news, on-chain trends indicate that Ethereum is showing signs of a major bullish breakout as macroeconomic and on-chain trends align with historical market behavior.

On Thursday, Ethereum was trading at $2,593.20, showing strength with a 3.58% increase in market cap and 24-hour trading volume at $14.76 billion.

Averaging gains of 8.16% over the past week, ETH has also managed to reclaim support above the $2,580 level.

Averaging gains of 8.16% over the past week, ETH has also managed to reclaim support above the $2,580 level.

As the bullish move unfolds, investors and traders are focusing on key resistance levels for ETH.

Major Resistance Levels:

Short-term resistance is placed at $2,735.89, while major resistance is anticipated around the psychological price point of $3,000.

Key Support Levels:

On the downside, immediate support is provided at $2,580, and a break below this level could open doors for further declines.

Chart Analysis:

A glance at the 4-hour ETH price chart reveals that the altcoin has been consolidating within a defined range.

The bullish move could be amplified by strong daily volumes, ETF inflows, and institutional push like that of BlackRock. Contrarily, ETH could find support at $2,479.50, forming a higher low pattern.

While history may not repeat perfectly, it appears to rhyme. Ethereum’s positioning in this macro cycle, combined with dollar weakness and institutional interest, we can expect the $3,000 level to fall into place.