Ethereum News Today: Ethereum Breaks $4000 on Institutional Demand and Supply Constraints

Ethereum’s 2025 price rally is drawing comparisons to its 2017 breakout, characterized by a sharp rebound after reclaiming the 50-week moving average. This resurgence is being driven by strong institutional demand and a tightening supply environment. The pattern has led analysts to draw parallels between 2025 and 2017, when Ethereum broke out of a prolonged consolidation phase, fueled by a similar confluence of demand and scarcity [1].

The current price action reflects a retesting of key technical levels, with Ethereum having rebounded from May lows near $2,250 and maintaining a position above the 50-week moving average. The price has now broken above $4,000 following a consolidation range between $1,570 and $4,000. Analysts have highlighted that this aligns closely with the breakout seen in 2017 and suggests a continuation of bullish momentum [1].

Institutional buying has played a critical role in this rally. According to on-chain data from Lookonchain, SharpLink Gaming increased its ETH holdings to $2.12 billion in August, while BlackRock’s purchase of over 65,000 ETH—valued at approximately $271.8 million—has further reduced available supply. This institutional participation is pushing the market into a supply-starved environment, amplifying upward pressure [1].

On-chain metrics also show increased staking activity and a decline in exchange-held balances, reinforcing the narrative of reduced liquidity and heightened demand. Whale accumulation has added to this dynamic, with investors purchasing $667 million worth of ETH in early August. This buildup has helped break out of a 45-month consolidation pattern, a move many analysts see as the beginning of a significant uptrend [1].

Merlijn The Trader noted that Ethereum’s 2025 price action is echoing the 2017 breakout phase in detail. In 2017, Ethereum moved from a long consolidation period to a sharp upward trend after reclaiming the 50-week moving average. This time, the catalyst is different—driven by ETFs, institutional interest, and a market with limited supply. Analysts anticipate that this combination could lead to a price target of $10,000, with some suggesting this may feel conservative given the current momentum [1].

Cas Abbe highlighted that the weekly candle has broken a 1.5-year resistance level, with six of the past seven weeks closing in positive territory. He predicts a retest of the breakout level before institutional buying resumes, which could potentially push Ethereum to a new all-time high before the end of August [1].

Analysts remain cautiously optimistic, with many forecasting a price target of $10,000 if the current market conditions persist. This projection is based on technical analysis of historical patterns, institutional inflows, and the tightening of supply. The convergence of these factors has created a bullish case for Ethereum, with further price milestones appearing within reach in the current market cycle [1].

Source: [1] Ethereum’s 2025 Rally Shows Potential Similarities to 2017 Breakout Amid Institutional Demand and Supply Constraints (https://en.coinotag.com/ethereums-2025-rally-shows-potential-similarities-to-2017-breakout-amid-institutional-demand-and-supply-constraints/)