Ethereum Price Nears $4,800 as Institutional Buying Triggers Supply Crunch

Ethereum Price Nears $4,800 as Institutional Buying Triggers Supply Crunch

Ethereum (ETH) is trading at $4,760, up 2.92% on the day and an impressive 30% over the past week. The rally is fuelled by heavy institutional accumulation, with exchange-traded funds (ETFs) now absorbing more ETH than is being issued — creating a tightening supply shock.

1. Institutional Supply Crunch Driving Momentum

This month alone, Ethereum ETFs have purchased 500,000 ETH, surpassing the 450,000 ETH issued since the Merge. Asset management giants Fidelity and BlackRock collectively hold $22.68 billion in ETH .

The next big potential catalyst could be a $1 billion+ single-day ETF inflow , which analysts say might trigger an instant 3–5% pump in ETH’s price.

2. Wall Street Turns Bullish on ETH

Investment bank Standard Chartered has raised its 2025 ETH price target to $7,500 — a 58% upside from current levels. Meanwhile, progress on the CLARITY Act could provide much-needed regulatory certainty, opening the door for more institutional participation.

3. Technical Levels to Watch

• Support: $4,348 (Fibonacci level)
• Short-Term Targets: $4,784 → $5,288 (127.2% Fib extension)
• Overbought Signals: The Relative Strength Index (RSI) sits at 79.93, suggesting a potential pullback, but dip-buying remains strong.

📈 Trade Setup

• Long Entry: Add above $4,784 targeting $5,300
• Hedge: Place stop-loss at $4,300 (weekly close basis)
• Breakout Scenario: If ETH breaks the previous ATH at $4,878, analysts see a clear path to $6,000.

⚠ Key Risks

1. A rise in Bitcoin dominance could divert capital away from altcoins.
2. ETF inflow momentum slowing down.

Ethereum is increasingly seen as the institutional darling of crypto markets, with ETF-driven accumulation creating a significant supply squeeze. Unless the trend reverses, dips below $5,000 may continue to present buying opportunities for traders eyeing the next leg toward new all-time highs.

$ETH, $BTC, $Ethereum