ETH breaks multi-year downtrend against BTC, signaling a potential bullish phase.
Exchange supply drops below 4.9%, hinting at institutional accumulation.
ETF inflows boost ETH, challenging BTC’s market dominance.
Ethereum (ETH) has made headlines by shattering a multi-year downtrend against Bitcoin (BTC), marking a potential turning point in the crypto market.
According to a post from CryptoBusy on X, ETH has flipped a long-standing resistance trendline—a structural shift not seen since 2021. This breakout, visualized through a falling wedge pattern, signals strong bullish momentum, with technical analysis suggesting room to target higher Fibonacci levels. For Web3 enthusiasts, this could herald a new phase of Ethereum dominance, driven by institutional interest and reduced exchange supply.
$ETH / $BTC just broke out of a multi-year downtrend.
After spending years trapped under resistance, ETH has finally flipped the trendline, a structural shift that hasn’t happened since 2021.
Key points:
• Multi-year resistance broken
• Strong momentum off the lows
• Room to… pic.twitter.com/E8imUhAGdl
— CryptoBusy (@CryptoBusy) August 16, 2025
The technical breakout is backed by on-chain data. Santiment’s latest metrics indicate ETH’s exchange supply has dropped below 4.9%, a level last seen during Bitcoin’s 2021 bull run, hinting at significant accumulation by long-term holders or institutions. This scarcity narrative is further supported by CoinShares’ reports of five consecutive weeks of positive ETF inflows into ETH by mid-2025, injecting fresh capital into the ecosystem. Meanwhile, the ETH/BTC pair’s upward move challenges BTC’s historical dominance, a shift that could reshape decentralized finance (DeFi) and smart contract platforms built on Ethereum.
However, the road ahead isn’t without risks. Analysts caution that profit-taking or a failed retest of the breakout level could trigger volatility. The $3,700 resistance zone, as noted in InvestingHaven’s August 8 analysis, remains a critical hurdle. If ETH holds above the trendline, targets of $4,000 or higher could be in play, potentially sparking a parabolic rally akin to predictions from analyst Carl Runefelt earlier this year. For Web3 developers and investors, this moment underscores the importance of staying agile—DYOR (Do Your Own Research) is more critical than ever.
Ethereum’s breakout is more than a chart pattern; it’s a signal of evolving market dynamics. As the DeFi and NFT sectors lean heavily on ETH, this shift could accelerate innovation, drawing more builders and capital into the Web3 space. Watch this space closely as Ethereum aims to reclaim its throne.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
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