Ethereum’s price has rebounded in recent days after the Fusaka upgrade, boosting network metrics and investor sentiment. ETH reached $3,247, its highest since Nov. 14, roughly 20% above its November low. Here are the top reasons a 60% rally toward the year-to-date high (~$4,960) is possible.
Summary
– Bullish technicals point to a breakout.
– ETF inflows and falling exchange reserves show demand.
– Large-scale accumulation by firms continues.
– Network upgrades and sector leadership support longer-term growth.
1) Bullish technicals
On the daily chart, ETH formed a falling wedge connecting highs and lows since Sept. 26 and has broken above the wedge’s upper trendline. It is attempting to flip the Supertrend indicator green, while the Percentage Price Oscillator (PPO) lines have made a bullish crossover and are rising. These technicals make a continued rally toward the year-to-date high (~$4,960, about 60% above current levels) the most likely scenario.
2) ETF inflows and demand
U.S. investors continue to buy spot Ethereum ETFs. SoSoValue data shows ETFs added roughly $312 million last week and $9.6 million this week, even as spot Bitcoin ETFs shed about $142 million. Continued ETF inflows provide steady institutional demand for ETH.
3) Falling exchange reserves and accumulation
Investors are withdrawing ETH from exchanges, moving supply into ETFs, staking, and long-term custody. CoinGlass reports that exchange-held ETH supply has dropped to about 8.84%, well below Bitcoin’s 14.8%. Large buyers have been active too—firms like BitMine (whose chairman is Tom Lee) have accumulated significant amounts, reportedly buying over $11 billion worth of Ethereum in recent months. Lower exchange reserves and sustained accumulation reduce sell-side liquidity and support higher prices.
4) Network upgrades and sector leadership
Developers continue improving Ethereum’s protocol, most recently via the Fusaka upgrade. These enhancements aim to make Ethereum more efficient and attractive for builders. Ethereum currently leads in key areas such as decentralized finance (DeFi) and real-world asset (RWA) tokenization; ongoing upgrades and ecosystem dominance should drive further demand from projects and institutions.
Taken together—favorable technicals, persistent ETF demand, declining exchange supply, large-scale accumulation, and protocol improvements—these factors support the case for a substantial upside move in ETH over the coming weeks.
