coinpedia.org
-
Ethereum Gathers Bullish Momentum: $ETH surges 6% in July as ETF inflows, stablecoin growth, and whale buying signal a potential breakout.
-
Analyst Calls $ETH a "Powder Keg": Eric Conner says $ETH is primed for an explosive rally, fueled by on-chain strength and shrinking exchange supply.
Ethereum ($ETH) is showing signs of a potential breakout after a volatile performance over the past year. After plunging 22.7% year-over-year and a steep 45.3% in Q1 2025, Ethereum bounced back with a 36.5% surge in Q2, driven mainly by a strong May return of 41.1%.
Now, as Q3 kicks off, $ETH is gaining momentum again. Starting July at $2,403.98, Ethereum has already climbed over 6% to reach $2,593.60. In the past week, it has added 5%, hinting at renewed bullish energy.
“Ethereum Is a Powder Keg,” Says Analyst
Crypto analyst Eric Conner took to X to call Ethereum a “powder keg,” suggesting that multiple bullish signals are aligning for a potential explosive move upward.
Here are the key drivers behind his thesis:
1. Stablecoin Growth Shows Strength
Ethereum’s role as the backbone of the stablecoin ecosystem continues to shine. At its recent peak, stablecoins on Ethereum reached a $251B market cap. Currently, they hold $126.31B, with a $888.92M increase in just seven days. Tether leads with $64.12B, followed by USDC at $38.10B and Ethena’s USDe at $5.09B.
This consistent demand signals strong on-chain activity and confidence in Ethereum’s infrastructure.
2. $ETH ETFs Attract Institutional Money
Spot Ethereum ETFs are gaining traction fast. In June alone, they recorded over $1.17B in net inflows. Even in July, inflows remain positive despite daily fluctuations—BlackRock’s ETHA and Grayscale’s ETHE pulled in $54.8M and $10M, respectively, on July 1.
The trend highlights growing interest from traditional finance, a bullish sign for $ETH’s long-term prospects.
3. Exchange Supply is Shrinking
According to CryptoQuant, the $ETH supply on centralized exchanges has steadily declined from 19.51M at the start of 2025 to 19.03M now. Less supply on exchanges means buying pressure can trigger quicker price moves, a crucial setup for a potential breakout.
4. Whales Are Loading Up
Wallets holding 1,000 to 10,000 $ETH accumulated over 800,000 $ETH per day during a week in June—the most aggressive buying since 2017. This strong accumulation happened even as $ETH slipped 1.62% in June, showing that large players are betting big on a bullish turnaround.
Final Thoughts
With surging ETF inflows, growing stablecoin activity, shrinking exchange reserves, and whale accumulation, Ethereum could be on the verge of a major breakout. If $ETH can flip the $2,600 resistance, a rapid price rally may follow.