Ethereum is showing a market pattern similar to the 2016–2017 cycle, when prices surged after a long period of stability. The previous price increase was mainly driven by retail investors, while the current cycle is supported by retail traders, institutional investors, and widespread global acceptance. At the time of writing, Ethereum is trading at 4,642 dollars.

Institutional Demand and Price Structure

According to the observations of Merlijn The Trader, Ethereum is following the scenario of the 2016–2017 phase. Previously, the bullish momentum was driven only by retail investors, but this time, it combines with Wall Street participation and widespread global adoption.

Gert Van Lagen also reported that Ethereum has broken out of a four-year inverse head and shoulders pattern, targeting a price around 22,000 dollars. The 2024–2025 cycle has shown consolidation in the range of 1,200 to 4,300 dollars before a strong price surge.

Spot Ethereum ETF funds recorded a net inflow of 1.02 billion dollars on Monday, the highest in a single day since mid-2024. BlackRock's iShares Ethereum Trust attracted 640 million dollars, while Fidelity's Ethereum Fund increased by another 277 million dollars. Total ETF inflows have reached 10.8 billion dollars, mostly occurring in the past month.

Network Strength and Market Leadership

Data from Glassnode shows that the supply of Ethereum held by exchanges has decreased to a nine-year low of 15.28 million ETH as more ETH is being moved into long-term storage. This decline in liquidity supply occurs alongside increasing buying activity from institutions.

Ethereum continues to lead the decentralized finance space with over 66% market share and a total value locked of more than 200 billion dollars. The network also dominates the stablecoin sector with over 138 billion dollars in assets. Companies like BitMine and SharpLink are expanding their Ethereum reserves, with BitMine planning to raise 24 billion dollars to purchase more.

Technical indicators show that Ethereum has surpassed the resistance level of 4,100 dollars, with a potential target near 4,800 dollars. Gert Van Lagen predicts that if Bitcoin peaks around 370,000 dollars, Ethereum could reach 22,000 dollars, supported by an ETH/BTC ratio close to 0.06.