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Ethereum is "Following the 2016–2017 Script", But This Time Wall Street is Involved
Ethereum is showing a market pattern similar to the 2016–2017 cycle, when the price rose to the sky after a long period of stability. The previous rally was mainly driven by retail investors, while the current cycle is supported by retail traders, institutional investors, and widespread global acceptance. At the time of writing, Ethereum is trading at 4,642 dollars. The Demand of Organizations and Price Structure According to the observation of Merlijn The Trader, Ethereum is following the scenario of the 2016–2017 period. Previously, the upward momentum was only driven by retail investors, but this time, it is combined with the participation of Wall Street and widespread acceptance worldwide.
Gert Van Lagen also reported that Ethereum has escaped from a four-year inverted head and shoulders pattern, targeting a price around $22,000. The 2024–2025 cycle has shown consolidation in the range of $1,200 to $4,300 before a strong rally.
Ethereum spot ETFs recorded a net inflow of $1.02 billion on Monday, the highest in a single day since mid-2024. BlackRock's iShares Ethereum Trust attracted $640 million, while Fidelity's Ethereum Fund added $277 million. The total ETF inflow has reached $10.8 billion, mostly occurring in the past month. Network Strength and Market Leadership Data from Glassnode shows that the supply of Ethereum held by exchanges has dropped to a nine-year low of 15.28 million ETH as more ETH is moved into long-term storage. This decline in liquid supply coincides with an increasing buying activity from institutions. Ethereum continues to lead the decentralized finance sector with over 66% market share and a total value locked of more than 200 billion dollars. The network also dominates the stablecoin sector with over 138 billion dollars in assets. Companies like BitMine and SharpLink are expanding their Ethereum reserves, with BitMine planning to raise 24 billion dollars to purchase more. Technical indicators show that Ethereum has surpassed the resistance level of $4,100, with a potential target near $4,800. Gert Van Lagen predicts that if Bitcoin peaks near $370,000, Ethereum could reach $22,000, supported by the ETH/BTC ratio near 0.06.