Ethereum Signals 20% Price Surge Amid Growing Demand

Ethereum, the second-largest cryptocurrency by market capitalization, is showing several key signals that suggest it may be on the verge of a significant price breakout. Eric Conner, a former core developer of Ethereum, has highlighted compelling indicators that point towards a potential surge in the cryptocurrency's value. These signals include growing stablecoin usage, strong ETF inflows, and rapidly declining exchange reserves.

Conner emphasized that stablecoin transfer volume has surged for 21 straight months, now nearing levels seen on Visa’s payment network. This trend is viewed as a clear indicator of rising demand for Ethereum block space, which fuels ETH’s value as the network’s economic engine. The increasing use of stablecoins suggests a growing need for Ethereum's infrastructure, which could drive up the value of ETH.

At the same time, spot Ethereum ETFs recorded $1.17 billion in net inflows in June alone. With expectations of much larger allocations later this year, institutional appetite for ETH appears to be accelerating. Fund managers are reportedly preparing for increased exposure in the second half of 2025, suggesting long-term confidence in Ethereum’s future role in finance. This institutional interest is a significant driver of Ethereum's price, as it provides a solid foundation for the cryptocurrency's value to build upon.

Perhaps most notably, ETH reserves on centralized exchanges have dropped to just 9 million coins—a figure not seen since 2015. This shrinking supply is creating upward pressure on price. As available ETH becomes scarcer on exchanges, any surge in demand could trigger a steep rally, particularly if retail and institutional interest converge. The reduced liquid supply on exchanges is a bullish signal, as it indicates that more ETH is being held for long-term investment rather than short-term trading.

Conner also pointed to Ethereum’s recent price consolidation between $2,400 and $2,600, suggesting that a decisive breakout above the current range could unleash a sharp rally. According to Conner, this kind of sideways movement often precedes sudden volatility, and given the current supply-demand dynamics, the next move could be swift and aggressive. The technical indicators, coupled with the on-chain and market activity, suggest that Ethereum may be on the verge of a significant price breakout.

The broader implication of Conner's analysis is that Ethereum may be transitioning into a new phase—where its growing utility, deepening institutional involvement, and reduced liquid supply all work together to create a powerful bullish environment. If these trends persist, the market may soon witness an explosive shift in ETH’s valuation. The potential for a bullish rally in Ethereum has been further bolstered by the cryptocurrency's on-chain and market activity, technical indicators, and price targets. These key signals suggest that Ethereum may be on the verge of a significant price breakout, and investors should keep a close eye on the cryptocurrency's price action in the coming weeks.