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Ethereum’s price momentum remains robust despite recent resistance at $2,800, with multiple indicators pointing toward a potential surge to $5,000 by 2025.
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Institutional interest continues to grow, as evidenced by strong inflows into Ethereum ETFs and a significant decline in ETH supply on exchanges, signaling a tightening market.
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According to COINOTAG sources, the combination of MVRV price bands and a V-shaped recovery pattern suggests substantial upside potential for ETH in the coming months.
Ethereum’s sustained ETF inflows, shrinking exchange supply, and bullish technical indicators point to a possible $5,000 ETH price target by 2025.
Institutional Demand Fuels Ethereum ETF Inflows
The persistent inflows into Ethereum-based investment products underscore a growing institutional appetite for ETH. Recent data from CoinShares reveals that global Ethereum ETFs have attracted net inflows of $226.4 million last week alone, maintaining an average weekly inflow rate of 1.6% of assets under management over the past 11 weeks. This contrasts sharply with Bitcoin’s 0.8%, highlighting Ethereum’s increasing appeal among professional investors.
James Butterfill, head of research at CoinShares, remarked, “This highlights a notable shift in investor sentiment in favor of Ethereum.” US spot Ethereum ETFs, led by BlackRock’s iShares Ethereum Trust (ETHA), have recorded over $510 million in net inflows in the last two weeks, reinforcing the trend.
Such sustained institutional demand is a critical driver for ETH’s price stability and potential breakout above the $2,800 resistance level, setting the stage for new all-time highs in the second half of 2025.
Exchange Supply Decline Signals Reduced Selling Pressure
On-chain data from Glassnode indicates that Ethereum’s supply on exchanges has plummeted to an eight-year low of 13.5%, levels unseen since July 2016. This contraction in available ETH supply on trading platforms suggests a looming supply shock, where demand outpaces available coins, typically leading to upward price pressure.
Notably, whale wallets holding 100,000 or more ETH have increased their holdings from 18.1 million ETH in late May to 18.8 million ETH by early July, signaling strong accumulation rather than profit-taking. This trend reduces short-term sell pressure and supports a bullish outlook for ETH.
Technical Indicators Support Further ETH Price Appreciation
The Spent Output Profit Ratio (SOPR) for Ethereum currently stands at 1.01, indicating that most short-term holders are in profit and are not rushing to liquidate their positions. Historically, SOPR values above 1 during uptrends suggest continued market confidence and room for price appreciation.
Moreover, Ether’s Market Value to Realized Value (MVRV) ratio reveals that the asset is trading below its upper extreme deviation bands, which range between $4,000 and $5,000. This implies that ETH’s price has substantial headroom before reaching levels considered overvalued by historical standards.
V-Shaped Recovery Pattern Reinforces Bullish Momentum
Since December 2024, ETH has formed a pronounced V-shaped recovery on the weekly chart, a classic technical pattern signaling strong reversal and upward momentum. The current price consolidation between $2,600 and $2,800 aligns with key moving averages, including the 50-day and 100-day SMAs, which act as critical resistance zones.
A decisive break above this supply-demand zone could propel ETH toward the neckline at approximately $4,100, completing the V-shaped pattern and paving the way for a potential rally to the 2021 all-time highs near $4,800. This represents a near 92% upside from current levels.
Outlook: Ethereum’s Path to $5,000
Multiple factors converge to support a bullish outlook for Ethereum in 2025. Institutional inflows, reduced exchange supply, and favorable technical setups collectively suggest that ETH is positioned for significant gains. Network upgrades and increasing adoption by treasury companies further enhance Ethereum’s fundamental strength.
Investors should monitor ETF inflows and on-chain accumulation trends closely, as sustained momentum in these areas will be critical for ETH to overcome resistance and achieve the $5,000 price target.
Conclusion
Ethereum’s price action, underpinned by strong institutional demand and constrained supply, indicates a promising trajectory toward $5,000 in 2025. The convergence of technical indicators such as SOPR and MVRV bands, alongside a V-shaped recovery pattern, reinforces this outlook. While market dynamics remain fluid, the current data-driven narrative favors a sustained bullish trend for ETH, making it a compelling asset for investors seeking exposure to the evolving crypto landscape.
