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- Ethereum is leaving exchanges at a record pace, with only 6.38% of its supply available.
- Analysts predict ETH could reach $14,000 by 2025, fueled by institutional interest and favorable trends.
Ethereum is showing signs of recovery this week, climbing to $2,745 and outperforming most altcoins. The second-largest cryptocurrency by market capitalization, according to Santiment, is picking up momentum from traders. This follows a lackluster 2024, where ETH underperformed other large-cap assets.
A key observation is the moving of ETH’s supply from exchanges, with 6.38% of the total supply still on trading platforms. This is the minimum amount of supply on exchanges after the launch of Ethereum and suggests holders opt for long-term holding of the asset in cold wallets, with trust in its future value.
Why Ethereum Could Dominate Soon
Ethereum has lagged Bitcoin this cycle, but there’s a perception on the other side, and that’s changing. Historically, ETH has been more solid from the start of the year, from January to June. The optimal period for gains, experts say, has been 10 years of historical data.
Institutional investors also moved their attention towards Ethereum, and today, it’s a valuable asset due to its stability and usability. ETFs contributed significantly toward this, providing a systematic and regulated way for institutions to invest in Ethereum.
Since November 2024, there has been $6 billion of flows into Ethereum ETFs, more than double the rate of Bitcoin ETF flows for the same period.
Major institutions also are tokenizing real assets, such as real estate, on the Ethereum blockchain. This has made the network even more established as the infrastructure of DeFi and puts it on its way toward dominance.
Economic Trends Favor Ethereum
Global economic trends also favor the rise of Ethereum. The Federal Reserve has also signaled a possible monetary policy reversal with the slowdown of its balance sheet contractions after May 2024. If this translates into infusions of liquidity, historically, this has propelled Ethereum ahead of Bitcoin.
Political factors also favor Ether. The pro-cryptocurrency policy of the Trump regime and its plans for promoting decentralized finance and replacing top SEC officials could lead to more conducive regulations for projects on the network.
5/x Ethereum dominates real-world assets (RWA) and institutional DeFi:
• BlackRock and other institutions tokenize assets like real estate and funds on Ethereum.
• Major RWA platforms like AAVE, MakerDAO, and OriginTrail are Ethereum-based.Ethereum isn’t leading meme coin or…
— VirtualBacon (@VirtualBacon0x) January 19, 2025
The president’s own ventures, including NFT and DeFi platforms on Ethereum, also played their part in the positive environment for the asset.
ETH Key Levels to Watch This Week
ETH’s short-term future has made the crypto world expectantly await with hopes of a probable rise towards $3,300 in a week. The reason for this expectation stems from the likelihood of ETH being able to surpass and even breach a significant resistance point, paving the way for a more stable period of growth.
Crypto commentator Ted Pillows recently made a post in which he claimed that ETH is primed for a short-term pump. According to him, traders had been diverted with speculation on meme tokens, but they are anticipated to redirect their efforts towards utilitarian assets like Ether.
Pillows highlighted $3,100 and $3,300 as realistic targets for ETH in the near future. He also said that after this potential upswing, the market may experience consolidation for a short period of time, after which it will be primed for its next upswing.
This short-term momentum has its roots in the growing appeal of ETH for investors who are on the lookout for assets with real utility and future growth. If ETH can breach this resistance, then this can take towards a sustained upswing and can also generate a way for its ambitious future targets.
