Ethereum Surges 20% to $2,500 on Low Supply, Bullish Outlook

Ethereum has recently shown a remarkable performance, surpassing the $2,500 price mark after months of bearish pressure. This upward trend is attributed to several key factors, with one standing out as the primary catalyst for the notable price growth. The surge past the $2,500 level was driven by low supply concentration in the $1,800 to $2,500 range, making this price range crucial for Ethereum's upward trajectory. This development indicates Ethereum's resilience in recent market conditions, suggesting a bullish long-term outlook for the second-largest digital asset.

However, after slightly surpassing the $1,800 to $2,500 price range, Ethereum's rally faced significant resistance at the $2,580 mark. On-chain data shows that more than 1.3 million ETH were held at this price level, making it the next key area that bulls must surpass for a continued upswing. Furthermore, the supply at this point dropped to 1 million ETH, indicating that holders were exiting the market near a cost basis as the price moved closer to this point.

Ali Martinez, an on-chain expert and trader, also highlighted key levels in Ethereum's price dynamics after examining the Global In/Out of the Money metric. This metric shows holders' behavior and interest at certain price levels. Martinez pointed out a critical price range between $2,060 and $2,420, which is the most important support floor for Ethereum. More than 69 million ETH is being held at this level by about 10 million wallet addresses. With Ethereum now trading above this price range, it could act as a strong support against impending downside attempts.

As Ethereum demonstrates bullish action, market expert Kyle Doops outlines that funding rates across all crypto exchanges remain flat. Ethereum's funding rates persistently staying flat show that traders are not jumping into excessively leveraged positions despite the recovery. Doops highlighted that Ethereum's upward performance is not leverage-driven but mainly powered by real spot demand. This is due to steady buying activity with no wild liquidations and no leveraged noise. Should futures begin to be pursued as well, the expert is confident that Ethereum may see significant growth in the upcoming weeks.