Exchange ETH supply drops to 12%, lowest since 2016, fueling altseason speculation and potential parabolic moves.
Ethereum has surged to $4,300, its strongest rally against Bitcoin since 2021, sparking fresh debate over whether the next move is a blow-off top or a brief cooldown before liftoff.
According to analyst VirtualBacon, the path ahead could see ETH price retesting its $4,850 all-time high before targeting $6,000-$7,000 by year-end, assuming Bitcoin advances toward $150K and ETH/BTC hits 0.044. His conservative target sits at $6,600.
Meanwhile, Ethereum co-founder Joseph Lubin has recently predicted that ETH could surpass Bitcoin’s market cap within the next year.
Looking at the present market scenario, VirtualBacon says ETH is in its strongest uptrend against Bitcoin since 2021, with institutional inflows, ETF momentum, and ETH-linked altcoins all lining up for potential upside. But the path forward depends on which of two scenarios plays out.
If Bitcoin rallies toward $150K and ETH/BTC climbs to 0.044, ETH could smash past its $4,850 all-time high and hit $6,000-$7,000 this year. Institutional flows are tilting heavily in ETH’s favor, with ETFs now holding $33B worth of the asset, up from $24B in July. A decisive break above $4,850 could see prices accelerate quickly, especially with BTC dominance dipping for the first time since 2021, hinting at the start of altseason.
On the flip side, ETH could see a retrace before the big move. Analyst pegs $3,350 as the “floor” level, July’s higher low and a key uptrend support, unless Bitcoin itself tanks. This dip would allow traders to accumulate at lower prices, with their swing bot strategy buying dips and selling rips in the $3,350-$4,850 range. A pullback here could set up a stronger Q4 run, with altseason confirmed if BTC dominance closes below 60.5%.
If ETH keeps leading, certain DeFi and stablecoin plays could see major moves. Analyst’s watchlist includes heavyweights like UNI, LINK, CRV, and COMP, along with rising stars AERO, PENDLE, ENS, and HOME. Stablecoins are also a stealth bullish driver, with most USDC and USDT supply sitting on Ethereum. Projects like World Liberty Financial’s USD1 could see explosive growth if major deals land, potentially boosting related tokens like WLFI, BLOCK, and DOLO, as well as NASDAQ-listed ALTS stock.
Overall, the analyst’s playbook is clear for investors to hold ETH above $3,350, stay focused on ETH-powered DeFi and stablecoin projects, and wait for Bitcoin dominance to confirm an altseason breakout. If his timing is right, Q4 could bring Ethereum’s next parabolic moment.
Adding to this, Crypto analyst Kyle Chassé sounded the alarm that Ethereum’s supply on exchanges has dropped to just 12%, the lowest level since 2016. With demand climbing and available supply shrinking to decade lows, he believes the stage is set for potentially explosive price moves. He teased that this could mark the start of altseason, or perhaps just the beginning of an even bigger run for ETH.
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