Ethereum (ETH), meanwhile, has shown even more bullish movement in the first full week of July, soaring from $2,403.98 to over $2,625. At the same time, this increase marks a 5% increase in the last week. Civic analysts believe this is just the start of a much larger rally, possibly taking the price to close to $7,000.

Ethereum’s recent performance shows an impressive recovery, particularly when looking at its recent underperformance. Having begun the month of July at $2,403.98, Ethereum soon shot up towards $2,625. Even at today’s prices of $2,574.14, Ethereum is still 5% higher than a week ago. Specifically, during one of Ethereum’s previous bear runs, Ethereum had declined by 60% while Bitcoin was hitting all time highs. Since Ethereum has blew Bitcoin out of the water on a relative gain basis.

Market Analysis and Predictions

Analysts Alek and KALEO are convinced that the bottom is, in fact, behind Ethereum and this is a bullish sign for the second largest crypto asset. Ethereum has a history of explosive growth. In 2020, it took off at first slower than Bitcoin’s new all-time highs but then later on with its 800%-plus rally.

Ethereum appears ready to kick off a new momentum phase. This phase will probably be marked by violent and developing price action as it moves beyond major resistances, beginning with $2,600. The crypto has been trading in a very tight range between $2,400 and $2,600 with higher lows and low volume. This configuration has historically resulted in major price swings, indicating a bullish breakout toward $7,000 is likely.

Institutional Interest and Network Growth

Eric Conner, one of the founding team members behind Ethereum, further identifies institutional inflows, stablecoin growth, and record-low exchange balances as key factors driving Ethereum’s growth. Ethereum’s recent bullish momentum is reinforced by the growing accumulation of ETH by large wallet holders. Wallets holding between 1,000 and 10,000 ETH accumulated over 800,000 ETH in June alone, reflecting strong confidence among major investors.

Ethereum continues to brag about an amazing $251 billion in stablecoins flowing through its ecosystems. This accomplishment showcases its importance to the decentralized finance (DeFi) ecosystem. On top of that, June experienced $1.17 billion in spot Exchange Traded Funds (ETF) flows into ETH, signaling a clear increase in institutional interest.

Declining Exchange Balances

Decentralized exchange balances have dropped to the lowest amount since at least 2015, with only 9 million ETH left on these exchanges. A potential reversal in this scarcity might uncharacteristically push prices up as the demand rises.