Ethereum (ETH) is sparking fresh interest as it enters what analysts are calling “scarcity mode.” Following a 21% price jump, Ethereum is now being compared to past bullish trends that led to significant rallies, suggesting that the cryptocurrency may be on the verge of another major price surge.

Ethereum Breaks Resistance, Igniting Bullish Momentum

In a key move, Ethereum has broken past a critical overhead resistance of $2,800, which marks the end of a prolonged consolidation period. This breakout, analysts suggest, could be the starting point of a strong upward trend. By surpassing the 50-day, 100-day, and 200-day moving averages, Ethereum is reflecting the same bullish setup it displayed in 2023 before it rallied by 129% in early 2024.

The current Ethereum chart mirrors a sequence of events from 2023. After a downtrend from Q2 to Q4 last year, ETH consolidated in Q3, allowing the price to stabilize and build momentum for a strong breakout. With each bullish confluence now being repeated, Ethereum could potentially reach a price range of $6,000 to $6,500 by early 2025 if this pattern holds.

Institutional Interest Surges with $132M Ethereum ETF Inflows

Ethereum’s recent rally has renewed interest from institutional investors, with Ethereum ETFs seeing $132 million in inflows over two days. This influx marks a positive shift in investor sentiment, contrasting with recent outflows and positioning ETH as an attractive option for “smart money.”

Ethereum’s supply on exchanges is at record low levels, with over 42.6% of the total supply locked up in staking contracts. This reduced availability of ETH in circulation, combined with increasing demand, has led to what some analysts call a “scarcity mode.” According to Henrique Centieiro, a venture capitalist, this limited supply could further drive ETH prices upward as demand continues to outpace available supply.

What’s Next? The Road to $6,000

With all these indicators pointing toward bullish momentum, Ethereum could be poised for significant gains in the coming months. If historical patterns play out similarly, ETH may approach the $6,000 mark by early 2025, creating potential opportunities for long-term investors looking to capitalize on Ethereum’s reduced supply and rising demand.