In recent weeks, Ethereum has demonstrated explosive growth but has still not surpassed its historical all-time high. Clearly, with new money flowing into the market, Ethereum is experiencing a demand shock.

Ethereum has surged more than 65% in the past month and over 160% since April.

Since the launch of Bitcoin ETFs in the US in January 2024, Wall Street funds, public companies such as Strategy and Trump Media, and even governments have accumulated more than 1.5 million BTC, while only about 300,000 coins have been mined. This 5-to-1 demand advantage has driven a 155% price increase, making Bitcoin the most profitable major asset in that time.

It's clear that a similar story is now unfolding with Ethereum.

At first, Ethereum didn't benefit from the same privileges. About 10 months after the ETH ETF launch in July 2024, only 660,000 coins had been acquired, with total inflows of approximately $2.5 billion. Purchases by public companies were minimal, and total ETH issuance stood at 543,000 coins. Unsurprisingly, Ethereum lagged behind Bitcoin during that period.

Then everything changed.

Since mid-May, spot ETH products have absorbed over $5 billion worth of Ethereum. Meanwhile, companies like BitMine Immersion, SharpLink Gaming, and Bit Digital unveiled large-scale crypto investment strategies. Altogether, these firms acquired 2.83 million ETH, likely fueling the current rally.

It's evident that the inflow of fresh capital hasn't dried up, meaning the crypto market rally could very well continue in the near term. Many experts forecast that ETFs and companies investing in ETH may purchase around $20 billion worth of Ethereum over the next year—roughly 5.33 million coins—while only about 800,000 ETH are expected to be issued. That's a supply-demand ratio of nearly 7 to 1.

In the short term, ETH's price remains driven by supply and demand, and demand is currently outpacing supply.

Trading recommendations

Bitcoin

Upside scenario: buyers are targeting a return to $119,200, which opens the way toward $120,700, with a potential continuation to $123,500. The most distant bullish target is the $124,500 area—breaking this level would confirm a strengthening bull market.

Downside scenario: if Bitcoin falls, buyers are expected around $117,600. A drop below this zone could quickly drag BTC down to $116,300, with the final support level around $114,900.

Ethereum

Upside scenario: A firm consolidation above $3,729 opens the road to $3,817. The farthest target is the recent high near $3,913—breaking this level would signal a return of strong buyer interest.

Downside scenario: If ETH declines, buyers are expected at $3,654. A drop below this support could quickly take ETH down to $3,589, with the furthest support around $3,512.

What's on the chart

• Red lines represent support and resistance levels, where price is expected to either pause or react sharply.
• The green line shows the 50-day moving average.
• The blue line is the 100-day moving average.
• The lime line is the 200-day moving average.

Price testing or crossing any of these moving averages often either halts movement or injects fresh momentum into the market.