Ethereum News Today: Ethereum Surges 50% to $3,300 as ETF Buying and Supply Crunch Fuel Rally

Ethereum (ETH) has surged past $3,300, sparking discussions among market participants about potential further gains. The recent wave of ETF buying and the reduction in exchange reserves have led many to speculate whether $6,000 could be the next significant milestone for ETH.

One of the most compelling indicators of a growing market is the decline in Ethereum supply on exchanges. When fewer coins are available on exchanges, it reduces the immediate selling pressure, which can support a price rally. Currently, exchange reserves of Ethereum have decreased to levels similar to those seen in early September 2024, when the ETH price was around $2,150. This was just before a rally that saw the price increase by over 90% in 101 days. The current drop in supply suggests that traders and institutions are moving their ETH into long-term wallets rather than selling it, which can drive the price higher over time.

This supply crunch is occurring alongside significant ETF demand. BlackRock alone purchased nearly $500 million in ETH, with other ETFs contributing to a total of over $1 billion in Ethereum purchases in a single day. This substantial investment indicates that major investors are betting on Ethereum's long-term potential.

The over-the-counter (OTC) market also shows signs of high demand. Wintermute, one of the largest OTC desks for crypto, has almost no Ethereum left to sell. OTC desks are where large buyers purchase crypto without affecting the price on public exchanges. The depletion of ETH on these desks suggests that large funds have already acquired significant amounts of Ethereum behind the scenes. SharpLink Gaming, for example, increased its Ethereum holdings from $892 million to $965 million in just one day, aligning with the ETF buying spree. This trend indicates long-term confidence in Ethereum and supports the price prediction of higher levels.

The ETH price has already surpassed $3,300 and shows strong signs of a continued uptrend. Using a trend-based Fibonacci extension from the April low to the swing high of almost $2,870 and then to the retraced value of $2,123, critical projections can be made. The next key resistance level, according to the Ethereum price prediction, is at $3,618. If this level is broken, a move towards $4,500 looks likely. The 2.618 extension, which often marks a potential peak if momentum stays strong, is over the $6,000 mark. Ethereum’s price move has been slow but steady, unlike the sharp spikes often seen in hype-driven markets. The lack of heavy exchange inflows indicates that there is no rush to sell, making this rally more stable. However, if the Ethereum price falls below $2,870, it could signal that the bullish momentum is fading. A drop below this level, especially if more ETH starts flowing back onto exchanges, would be a warning sign that sellers might take control.