Highlights:
- Ethereum has today broken out of short-term consolidation
- Breakout puts $3500 in focus short-term
- Possible December rate cut in the US could drive momentum
Ethereum (ETH) is in the green today, following the overall direction of Bitcoin. At the time of going to press, Ethereum was trading at $3027.51, up 4.44% for the day. Trading volumes are also on the rise. Intraday trading volumes have increased by 3.67% to $21.71 billion.
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These rising volumes alongside the price are an indicator that bulls are taking control of Ethereum. As such, Ethereum could experience significant growth in the short to medium term. Several factors support the continuation of Ethereum’s bullish momentum intraday.
Renewed Bitcoin Upside Momentum Boosting Ethereum
One of them is the perception that the cryptocurrency market has reached its bottom. Bitcoin’s price movement primarily drove Ethereum’s recent correction. When Bitcoin lost $90k and started pushing to the lower $80,000s, Ethereum also lost its $3,000 support.
Now that Bitcoin has broken back above $90k, Ethereum could follow suit as well. Already, Ethereum is back above the critical $3000 price level and is holding above it. If Bitcoin sustains the momentum it has built up intraday, ETH could rally to $3500 in the short to medium term.
We finally saw prices hold on majors!
I expect a retest of lows or some sort of new range in this area before we attempt for local highs!
On the contrary, seeing everyone on the timeline being bearish… there is a slim chance that we dont get any retests & Bitcoin goes… pic.twitter.com/htLKWtN54B
— Momin (@mominsaqib) November 26, 2025
Ethereum Gas Limit Increase Excites Investors
Ethereum has also gained a boost from an upgrade expected to reduce network congestion and increase throughput. The upgrade increased Ethereum’s block gas limit by 33% from 45 million to 60 million. This is exciting to the market because it is expected to increase the number of transactions, without the need for a hard fork.
It's done – the Ethereum L1 gas limit is now 60 million!
Onwards to even greater increases in 2026 – let's aim for at least a 3x to 180 million! https://t.co/nr2F5QkbhC pic.twitter.com/5eC9yfMHte
— sassal.eth/acc 🦇🔊 (@sassal0x) November 26, 2025
It is a low-risk move with a high reward, which has given Ethereum investors more confidence in the network’s stability. Ethereum investors are also looking forward to the upcoming Fusaka upgrade that is expected to make Ethereum even more efficient.
ETH Could Rally to $3500 as ETFs Draw Renewed Investor Interest
Ethereum’s intraday gains are also driven by renewed institutional interest. Recently, Ethereum, just like Bitcoin, experienced substantial outflows from its ETFs. However, this is changing. Data shows that Ethereum ETFs are starting to record inflows, a factor that could lead to Ethereum rallying to new highs in the short to medium term. This is an indicator that institutional money believes the Ethereum bottom is in, and the price can only go up from this point.
The return of institutional capital is a significant development, as it could also reignite retail interest in Ethereum. The result is that FOMO could start building up around Ethereum, triggering a parabolic price move.
Three straight days of net inflows for the ETH ETFs after a rough stretch last week
Though the ETH ETFs are still net outflows since September (-$700M) pic.twitter.com/KSD4hMFTMj
— TylerD 🧙♂️ (@Tyler_Did_It) November 26, 2025
Possible Fed Rate Cut In December Could Send Ethereum Higher
The macro environment also increasingly points to a continuation of the rebound. Of particular interest is the issue of US interest rates. Part of the reason for the recent Ethereum selloff was fear that the Fed may not cut rates in December. At some point, the odds of a rate cut dropped below 40%.
However, they have since rebounded above 80%. This is driving capital back into assets that could benefit from the cut, such as Ethereum. The price could continue to rise ahead of the rate cut and accelerate further once confirmed. The fact that the Federal Reserve is also ending QT on December 1 makes the case for a strong rally even stronger.
Suck it Powell we are cutting in December. Dec rate cut odds have now jumped to 85% pic.twitter.com/628YehAY1l
— Will Meade (@thechartdr) November 24, 2025
Technical Analysis – Ethereum Breaks Out of Multi-Day Range
Over the last couple of days, Ethereum has been consolidating between the $2,972.0 resistance and $2,870.2 support. However, today, bulls have taken control and pushed Ethereum through the $2972.0 resistance. If bulls can sustain this momentum, then the ETH could rally to $3500.
On the other hand, if the bulls lose momentum, two scenarios could emerge. The first is a potential Ethereum consolidation above $2972.0. The second is where the price breaches $2972.0, which is now support. In such a case, Ethereum could drop to $2800 in the short term. With expectations for a US rate cut high, the odds are higher for a rally to $3500 in the short term.
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