Ethereum (ETH) is entering a crucial phase, reminiscent of the spectacular boom in late 2020 and early 2021. This time, technical and fundamental factors are converging, creating an opportunity for ETH to surpass previous limits.
1️⃣ Can History Repeat Itself?
Let's go back to late 2020 – when Ethereum was undervalued:
Bitcoin Booms, But Ethereum Is Criticized for Limited Scalability and ETH 2.0 Delays.
Still, ETH has defied the odds, rising 5.4x in just four months after bottoming out.
Currently, the ETH/BTC ratio is at low levels, similar to the period before the 2021 bull run. Bitcoin continues to lead the growth, but ETH could soon break out and become the center of attention.
2️⃣ Positive Signals From On-chain Data
Ethereum Volume on Exchanges Is Dropping Sharply
There are currently only 12.62 million ETH (10.45% of total supply) left on exchanges, even lower than Bitcoin's rate (14.56%).
Over the past year, the amount of ETH on the exchange has decreased by 1.56 million ETH (~5.69 billion USD).
👉 Meaning:
Long term investors are accumulating ETH instead of selling.
Selling pressure has eased significantly, paving the way for a potential rally.
3️⃣ Solid Basic Foundation
Although ETH price has been growing slower than Bitcoin, Ethereum fundamentals continue to strengthen:
Layer 2 is booming: Optimism and Arbitrum help improve speed and reduce transaction fees.
Staking growth: More and more ETH is locked in staking contracts, reducing circulating supply.
Diverse ecosystem: Ethereum remains the leading platform for DeFi, NFTs, and RWA (tokenized real-world assets).
👉 Bottom line: These fundamentals provide a solid foundation, but ETH's current value remains undervalued.
4️⃣ Momentum From Ethereum ETF
Potential From ETF Funds
Ethereum ETFs currently manage just $540 million, dwarfing the $30 billion of Bitcoin ETFs.
But the involvement of large institutions like BlackRock and Fidelity promises to create huge inflows into ETH.
👉 Consequences:
Increase liquidity and legitimize Ethereum in the eyes of institutional investors.
Creating a strong push for ETH's next growth wave.
5️⃣ When ETH Breaks Out, Altcoin Season Will Follow
Ethereum is often the signal for the start of altcoin season. When ETH breaks out, other sectors may follow:
TradFi x Ethereum: Traditional financial funds developed on the Ethereum platform.
Stablecoins and RWAs: Real Asset Tokenization Projects Continue to Attract Capital.
Layer 2: Scaling solutions continue to drive new money into the Ethereum ecosystem.
6️⃣ Limited Supply – Price Increase
Currently, 89.55% of ETH has left exchanges, causing the amount of ETH available for trading to decrease significantly.
👉 Meaning: When demand increases while supply is limited, the pressure to increase prices will become greater.
Prediction: Will ETH Repeat History and Break New Milestone?
Ethereum is in a similar stage as late 2020, with supporting factors such as:
ETH/BTC ratio is near cycle bottom, just like before the 2021 bull run.
Strong Fundamentals: Layer 2, staking, and institutional inflows are driving ETH.
Low ETH volume on exchanges: Shows long-term investors are accumulating.
👉 If the ETH/BTC ratio returns to 0.08 as in the previous cycle, ETH price could reach $7,700.
The Time Is Coming: Are You Ready?
With all the factors converging, Ethereum has the potential to make a historic breakout.
Invest wisely and stick to your plan.
Don't let short-term market sentiment sway your decisions.
🚀 Ethereum's time is coming. Get ready!