Can Ethereum (ETH) surpass $3,407 after hitting a five-month high?

• Ethereum (ETH) surged 12.14% in 24 hours, reaching $3,407, its highest since February.
• Market cap rose to $411.27B, while daily trading volume hit $43.09B.

Ethereum (ETH) surged to a five-month high on Wednesday, reflecting growing institutional interest in crypto treasuries. ETH traded at $3,407.01, marking a 12.14% daily gain, with the market capitalization climbing to $411.27 billion. Trading volume reached $43.09 billion in 24 hours, up 20.71%, while the volume-to-market cap ratio held at 10.57%.

This renewed momentum follows heavy ETH accumulation by public companies. SharpLink Gaming, for example, disclosed a $225 million Ethereum purchase earlier this month. The firm transitioned from online gambling marketing to crypto treasury management after raising $425 million in May.

The move also brought Ethereum co-founder and Consensys CEO Joseph Lubin onto its board. Consequently, Ethereum has climbed 20.1% over the week, with $85.4 million in short positions liquidated in 24 hours, per CoinGlass.

Technical Indicators Signal ETH Uptrend

Technically, Ethereum remains in a strong uptrend. The daily chart shows ETH breaking firmly above the $3,200 resistance level. If this momentum continues, the price could test the next ceiling at $3,500. A breakout above that level may extend the rally toward $3,750. On the downside, $3,000 now acts as primary support, followed by $2,750 if selling intensifies.

The Relative Strength Index (RSI) reads 81.79, confirming overbought conditions. Yet, the divergence above its 14-day average of 64.90 signals strong upward momentum. Meanwhile, the Chaikin Money Flow (CMF) has surged to 0.28, reinforcing the presence of substantial capital inflows. Such CMF strength often precedes continued institutional accumulation.

ETH also trades well above its 50-day moving average, confirming the prevailing bullish structure. A positive crossover between the RSI and its average suggests ongoing strength in buyer conviction. All major indicators affirm that Ethereum is riding a decisive wave of buying pressure.

Still, the overbought RSI suggests a near-term consolidation could occur. If resistance levels break consecutively, Ethereum may push toward new yearly highs, with investor confidence and capital inflows driving the next leg up.