ETH Market Sentiment Shifts: Supply Crunch and Institutional Demand Spark Rally Hopes

Title: Ethereum (ETH) Price: Supply Crunch Could Trigger Massive Rally to $5,200

A recent surge in institutional demand for Ethereum-based ETFs has triggered a significant supply crunch, potentially leading to a massive rally to $5,200. In the past four days, Ethereum whales accumulated over 150,000 ETH worth $560 million through major purchases, further solidifying bullish momentum.

According to Bitwise CIO Matt Hougan, institutional entities could add $20 billion worth of ETH to their reserves in the next year, a staggering seven times more than expected ETH issuance. This significant demand has created an unprecedented supply shortage, which may ultimately drive prices higher.

Moreover, Ethereum’s current price chart is showing a critical technical situation. As shown by TradingView analysis, Ethereum currently challenges the $3,850 to $4,100 resistance zone, marking the upper boundary of a multi-year triangle pattern. A decisive weekly close above this level could signal a breakout and open the door to $5,200 in coming months.

Historically, Ethereum has exhibited robust performance, with over 50% gains in the past month alone. Furthermore, long-term holders are now holding more than 65 million ETH, suggesting a fundamental shift towards Ethereum adoption by institutional investors.

In light of this data, it is essential to monitor and analyze these developments closely as they unfold.

Source: coincentral.com