Key Takeaways

Ethereum was setting up just like it did in the 2017 cycle. With the dwindling supply of ETH on CEXs at 13.4% lower than that of Bitcoin, a rally could be imminent. Can institutions make this happen?

---

Ethereum [ETH] was trading at $3,435 at the time of writing, with the altcoin up about 8% in the last 24 hours.

The daily trading volume was about $52M at the time of writing, about $20M short of what Bitcoin [BTC] had.

As the altcoin continues to rally, analysts are betting on it to repeat previous successes. Can Ethereum do it?

A repeat of the 2017 pattern?

Analyst Mister Crypto on X, formerly Twitter, predicted that a rally for ETH was coming. The prediction came from the analysis that showed Ethereum could repeat its 2017 pattern.

Mister Crypto’s prediction suggested that ETH could surpass $6,200, which would coincide with the high of $385 in 2017. His tweet read;

“ETH is setting up just like it did in the 2017 cycle. If history repeats, a massive rally is imminent here!”

Looking at the current price action, the chart confirms the potential outlook. Price had consolidated since mid-June to mid-July but had swept liquidity on both sides with false breakouts.

Meanwhile, the volume bars were increasing as ETH pumped higher.

Ethereum’s continued price rise is boosting confidence that it could mirror its 2017 breakout.

Analysts and institutions are closely watching the altcoin, with deeper research revealing they’re actively contributing to the rally’s momentum.

Institutions scramble for the shrinking supply

BlackRock has added 159,101 ETH worth $499 million, bringing its total Ethereum holdings to 2.021 million ETH, valued at approximately $7 billion. 

This sizable accumulation places BlackRock firmly on the radar of Ethereum’s potential rally.

Still, Trump’s World Liberty Finance (WLFi) joined this purchase trail. While backing this potential surge, Ted Pillows reported that WLFi bought $4.99M worth of ETH.

Ted Pillows also backed the bullishness, saying;

“This is the worst time to be bearish on Ethereum.”

WLFi added another batch of ETH, bringing its total purchases for the day to $10 million.

Meanwhile, SharpLink Gaming acquired 10,850 ETH, pushing its total Ethereum holdings to $1.03 billion. 

Combined, these moves raised the total ETH held in strategic reserves to 1.6 million ETH.

This buying spree coincided with signs of a looming Ethereum supply crunch. According to Glassnode, ETH’s supply on exchanges dropped to 13.4%, compared to Bitcoin’s 14.5%, indicating stronger demand for Ethereum.

If this trend continues, Ethereum could be on track to mirror its explosive 2017 rally.

Ethereum’s shrinking supply is partly due to its growing staking market cap, which continues to climb. 

This trend may accelerate as banks increasingly choose Ethereum as the foundation for deploying their stablecoins, boosting demand even further.

read more