Ethereum Mirrors 2017 Breakout Pattern After Reclaiming 50-Week Moving Average

ETH’s 2025 rally mirrors the 2017 breakout after reclaiming the 50-week moving average.

Institutional buying and reduced supply are driving Ethereum’s sustained upward momentum.

Analysts see $10,000 as a conservative target if current market momentum holds.

Ethereum (ETH) is showing a technical structure similar to its 2017 breakout after reclaiming the 50-week moving average. Analysts note the current setup carries the same price pressure, with market conditions now fueled by ETFs, institutional demand, and reduced available supply. At the time of writing, ETH was trading at $4,197.

Historical Pattern Repeats with Strong Technical Structure

According to analysis prepared by Merlijn The Trader, ETH’s 2025 price action mirrors its 2017 breakout phase. In 2017, Ethereum moved from a long consolidation zone to a sharp breakout after reclaiming the 50-week moving average. That rally accelerated once horizontal resistance was cleared.

In 2025, ETH rebounded from May lows near $2,250 and maintained its position above the 50-week moving average during the recovery. The price has now broken above $4,000 after consolidating between $1,570 and $4,000. This move matches the earlier breakout pattern and indicates sustained bullish momentum.

Source: CasAbbe(X)

Cas Abbe observed that ETH’s weekly candle has broken a 1.5-year resistance, with six of the past seven weeks closing green. He expects a retest of the breakout level before institutional buying resumes, potentially pushing ETH to a new all-time high by the end of August.

Institutional Demand and Reduced Supply Fuel the Rally

Institutional participation is contributing to the current market strength. According to Lookonchain data, SharpLink Gaming increased ETH holdings to $2.12 billion in August. BlackRock purchased over 65,000 ETH worth about $271.8 million, further tightening supply.

On-chain metrics show increased staking activity and reduced exchange balances, creating a supply shortage. Whale investors accumulated $667 million worth of ETH in early August, adding to buying pressure. This demand supported a breakout from a 45-month consolidation pattern, a technical event many analysts view as the start of a major uptrend.

A combination of historical chart patterns, institutional inflows and supply constraints has mounted the bullish case. With continued momentum, analysts see $10,000 as a conservative target and bigger price milestones are within the range in this cycle.

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