Ethereum Surges 70% Year-to-Date Amid Institutional Accumulation

Coin WorldFriday, Jun 20, 2025 3:41 am ET
2min read

Ethereum is currently experiencing a surge in accumulation from institutional investors and smart money wallets. As of the latest data, Ethereum (ETH) is trading at $2,508, marking a gain of over 70% from its year-to-date low. Its market capitalization stands above $300 billion. Despite being 32% below its 2025 peak, analysts suggest that Ethereum could be on the verge of a significant breakout.

According to the pseudo-anonymous analyst Crypto GEMs, who has a substantial following on social media, Ethereum appears to have reentered a multi-week parallel channel on the daily chart. This pattern resembles a similar one from earlier this year, which preceded an 80% rally within a month. If Ethereum replicates that trajectory, it could reach the $5,000 level by the end of the year.

Technical indicators support this outlook. Ethereum is on the verge of forming a golden cross, with its 50-day simple moving average close to crossing above the 200-day SMA, a historically bullish signal. Additionally, ETH recently bounced cleanly off its 50-day EMA and is consolidating at the lower boundary of a broadening wedge pattern, a structure that often precedes upward breakouts.

Should bullish momentum continue, the next upside target lies near the $3,500 level, which aligns with the 78.6% Fibonacci retracement and serves as a key psychological resistance. A confirmed breakout above that level could pave the way for a rally up to $5,000, in line with the analyst’s projections.

Multiple catalysts appear to be aligning in support of this outlook. Spot Ether ETFs have regained traction among institutional players, with these products seeing significant net inflows in June. One of the most notable contributors to this demand is the world’s largest asset manager, which has accumulated over $750 million worth of ETH since the beginning of June. This accumulation phase indicates strong institutional conviction in Ethereum’s long-term value.

Further, large holders controlling between 1,000 and 10,000 ETH have ramped up accumulation, marking the highest net position increase in months despite market turbulence. On-chain signals also reinforce the bullish sentiment. Data shows that new wallet creation on the Ethereum network has surged, with between 800,000 and 1 million new addresses being created weekly. This marks a notable rise compared to the same period last year and is attributed to improved network utility and broader ecosystem engagement.

All these factors could continue to strengthen Ethereum’s underlying market structure, paving the way for a potential breakout. The renewed wave of accumulation from institutional investors and smart money wallets, coupled with bullish technical indicators and on-chain signals, suggests that Ethereum could be on the brink of a significant rally. If the current trends continue, Ethereum could reach the $5,000 level by the end of the year, aligning with the analyst’s projections.

Ask Aime: Can Ethereum's recent accumulation and potential breakout lead to a $5,000 price target?