U.S. legislation backing tokenization adds to bullish ETH momentum heading into Q4.
Ethereum may be preparing for a major run. Several metrics are stacking in its favor while Bitcoin dominance shows signs of weakness. The ETH/BTC ratio is nearing a key resistance zone. Traders say this moment could shift the market structure completely.
ETH’s rising demand and shrinking supply are making it hard to ignore.
Crypto trader MJ stated Ethereum currently has stronger short-term momentum than Bitcoin. He believes Bitcoin dominance peaked in late June. Since then, Ethereum has been gaining ground. He linked this to rising ETF flows, low exchange supply, and growing network usage.
MJ pointed out that both Ethereum spot ETFs and treasury vehicles have each absorbed about 1.6% of the total ETH supply since June. This drawdown has coincided with Ethereum transaction volume climbing near all-time highs. He also said ETF staking is on the way and could soon give ETH an edge over BTC.
Cas Abbé flagged a visible bull flag pattern on the ETH chart. According to him, Ethereum could soon print a new yearly high with a clean breakout above $3,800. At the time of writing, CoinGecko listed ETH at $3,810.95, up 5.32% in 24 hours.
Supply on exchanges continues to shrink. That’s typically a sign of accumulation. Cas said institutional buyers are stepping in while more ETH is getting locked in staking and burns. He believes this mix is building strong pressure for an upside move.
MJ also tied Ethereum’s performance to recent legislative support in the U.S. He mentioned that lawmakers have been advancing tokenization and stablecoin frameworks.
At the same time, the SEC has been accelerating its crypto integration plans. He believes many are underestimating what’s ahead once full-scale implementation begins.
Traders are now watching the ETH/BTC chart closely. Gordon, a popular crypto analyst, called the current resistance line “the wall between wealth and stagnation.” If ETH clears it, he expects ETH to surge past $5,000, with mid-cap and low-cap tokens potentially following.
Several market watchers are eyeing the September to October window for a decisive move. ETH still trades around 25% below its previous cycle high. This leaves room for a strong leg higher if the current setup holds.
