"Going to $7,500"...Why Institutions Are Betting on Ethereum

▲ Ethereum (ETH) © Godasol

Signals have been detected indicating that Ethereum has confirmed a capital flow surpassing Bitcoin and has entered the early stages of a full-fledged bullish cycle.

According to the investment media outlet TradingNews on April 16 (local time), Ethereum (ETH) rose to $2,359 during intraday trading before taking a breather around $2,331. The key indicator, the ETH/BTC ratio, soared to 0.0313, marking a three-month high. This is interpreted as a typical bullish reversal signal, indicating a shift of funds from Bitcoin (BTC) to Ethereum.

On-chain data clearly shows the basis for the rise. The number of new users in Q1 surged by 82% to 284,000, and the number of transactions reached an all-time high of 204 million. However, the total value locked (TVL) in DeFi remains stagnant at approximately $55.6 billion, indicating that the current rally is primarily driven by Layer 2 activity and increased network usage rather than new capital inflows.

The supply and demand structure is also rapidly changing. The total staked volume has expanded to 39.28 million ETH, and the Ethereum Foundation has staked 70,000 ETH (approximately $143 million), moving away from its previous selling stance. Furthermore, BlackRock has launched an Ethereum spot ETF product that stakes up to 95% of its holdings, simultaneously strengthening the reduction in circulating supply and demand for long-term lock-ups.

Technically, the $2,376-$2,388 range is a critical turning point. This range is where the 100-day moving average and resistance line converge. A breakthrough could open a path to $2,746, and then $3,411. Conversely, if the support level in the $2,200s breaks, there is a risk of a decline to $2,107, and further to $1,909. The current Relative Strength Index (RSI) is at 62, which is before the overheating stage, indicating room for further upside.

Looking at the market as a whole, the concurrent rise of altcoins is also clear. XRP (Ripple) rose by about 4% from the $1.41 level, and Solana and Cardano also showed simultaneous strength, indicating a spreading preference for risk assets. Institutional outlooks are also strong. Standard Chartered has set a target price of $7,500 for 2026, Tom Lee suggests $7,000-$9,000, and Arthur Hayes projects up to $20,000. Considering that the stablecoin supply within the Ethereum network amounts to $180 billion, and potential future capital inflows, the upside potential is still open.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*