CME Gap leads Ethereum price towards $4,070 as crucial level is surpassed
In the ever-evolving world of cryptocurrency, Ethereum (ETH) is making headlines with its resurgence in 2025. The second largest digital asset by market capitalisation is experiencing a surge in bullish momentum, driven by institutional interest, technical upgrades, and the growing DeFi ecosystem.
Current trends suggest that Ethereum could potentially appreciate significantly, with price predictions ranging between $5,000 and $10,000 by the end of 2025. This optimistic outlook is based on several factors, including the Pectra upgrade, which enhances scalability and prepares Ethereum for sharding and faster Layer-2 rollups.
Regarding institutional buying, Ethereum has seen both inflows and some recent outflows in Ethereum ETFs. Despite these outflows, over 6.3 million ETH (about 5% of the circulating supply) is still held by major issuers. Analysts interpret these outflows as temporary corrections rather than a loss of confidence, with institutions likely accumulating on dips to position for future gains.
On the supply side, the market context reflects strong trading volumes and reduced sell pressure as demand elevates. High trading volumes indicate heightened market activity, coupled with lower exchange withdrawals suggesting accumulation by holders.
Price movement predictions present an optimistic outlook, with analysts like Token Metrics forecasting Ethereum breaking past $3,000 towards $5,000–$10,000 by year-end. Other forecasts, like CoinCodex, expect prices to average around $6,764 to $9,000 in late 2025, reflecting strong return potential fueled by DeFi growth, ETH staking interest, and favorable macroeconomic signals.
Despite some corrective sell-offs and ETF outflows, the broader consensus remains bullish, with possible price dips seen as opportunities for institutional accumulation. Analyst Michaël van de Poppe notes that Ethereum has entered the first support zone and may bounce here, between $4,100 and $4,250.
However, it's important to note that key macro events may influence short-term price movements. These include a Trump-Zelensky meeting, July FOMC minutes, U.S. jobless claims, and Powell's Jackson Hole speech. The focus is on a CME futures gap between $4,050 and $4,100, which is considered a potential magnet level for the price.
In summary, Ethereum is currently experiencing a resurgence supported by institutional demand and technical protocol improvements. The supply dynamics indicate that institutional investors still control a significant share, contributing towards price stability amid market corrections. Traders are now watching for potential volatility around these upcoming developments.
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