Ethereum Reclaims Its Strength After Powerful 45% Surge Last Week

After months of underperformance and bearish sentiment, ETH's sudden strength is shifting investor focus back toward the altcoin market

A technical analysis by analyst Daan has revealed the massive scale of Ethereum's recent surge, highlighting the largest weekly candle in years and a potential turning point for the cryptocurrency.

As the dust settles on a remarkable price move that saw Ethereum (ETH) surge by 45% last week to reclaim a key price zone, analysts are beginning to highlight the magnitude of this rally and what it could mean for the next stage of the market cycle. As the second-largest cryptocurrency by market cap continues to press into critical resistance levels, investors are growing increasingly interested in the possibility of a broader altseason unfolding.

After months of bearish sentiment and outflows from the altcoin market, shifting investor focus back to Bitcoin, ETH's sudden strength has sparked speculation that capital may finally be rotating back into smaller assets. This shift in attention comes as macroeconomic uncertainty lessens and some of the riskiest assets, like memecoins, experience strong rallies.

Analyst Daan Contributes Fresh Perspective

While many analysts have focused on the memecoin mania and Bitcoin's price action, Daan, a well-known crypto analyst, shared a technical analysis post highlighting the significance of Ethereum's recent move. According to Daan, the massive weekly candle—one of the largest in years—was driven by a combination of technical breakout and short squeezes, as a large number of bearish positions were caught off guard.

This surge not only invalidated recent bearish structures but also marked a structural shift in momentum. With Ethereum now pressing into new territory and investor confidence rising, the market appears poised for renewed strength. If ETH continues to hold above current levels, it could pave the way for altcoins to follow in what may become the strongest altseason since 2021.

"This is a big level for ETH. Last week's candle was the biggest weekly candle in years as we saw a massive short squeeze on this move. A lot of bearish positions got liquidated quickly, fueled by the technical breakout at the 200-week EMA and SMA, leading to a sharp price increase. We're also seeing high volume on this move, indicating strong participation in the market."

"As we move into the next phase of this rally, we'll need to manage the volatility. We can play this level by level and see how it unfolds. Keep an eye on next week's price action to see where the altcoins will be picked up after the squeezes are done."

This moment is crucial not only for Ethereum but also for the broader altcoin market. ETH's recovery is often a leading indicator of renewed risk appetite and capital rotation into smaller assets. With bulls now in control and price pressing into a key supply zone, how Ethereum behaves over the coming days could determine whether altseason truly begins—or whether this rally was just a reaction to overly bearish positioning. Either way, ETH's strength has put the market back on alert.

Technical View: Price Surges Above Weekly Moving Averages

Ethereum is showing clear signs of recovery on the weekly timeframe, breaking decisively above the 200-week exponential moving average (EMA) and simple moving average (SMA) for the first time since its downtrend began earlier this year. After reaching a weekly low below $1,400 just a few weeks ago, ETH has rallied aggressively, closing this week near $2,555—a 45% surge that marks its most explosive candle in over a year.

The chart shows ETH pushing past the 200-week EMA at ~$2,259 and reclaiming the 200-week SMA at ~$2,451. Analysts often use these two long-term trend indicators to distinguish between bear and bull market phases. Ethereum's ability to close above both signals a potential shift in sentiment and structure, especially after months of lower highs and declining volume.

Volume on this breakout is also notable. The past two weeks have seen a significant uptick in participation, suggesting this move isn't just a short squeeze, but potentially the start of a broader recovery trend. ETH still faces resistance in the $2,700–$2,800 zone, but reclaiming this range could open the door for a sustained rally into Q3. The next few candles will be key in confirming this bullish reversal.