Key Takeaways:

• Ethereum surged from $2,403.98 to $2,625 in early July, showing a 5% weekly gain.
• Market watchers like KALEO and Alek draw strong parallels to ETH’s 2020 breakout structure.
• Eric Conner highlights institutional inflows, stablecoin growth, and record-low exchange balances as catalysts.

Ethereum kicked off July with notable momentum, beginning the month at $2,403.98 and hitting the $2,625 mark within days. At current pricing at $2,574.14, ETH is up 5% over the last week and is causing buzz regarding a potential breakout.

This follows a year of big price moves, with recovered optimism having overcome earlier-induced fatigue. The larger push is seen within a broader accumulation process.

Crypto chartist KALEO is convinced that the current ETH cycle is taking a familiar course. He likened the current setup to 2020 when the price of ETH trailed Bitcoin’s record high moves but later rallied by over 800%.

He pointed out that Ethereum was down by 60% at the time while the BTC printed new highs, but the smart contract protocol later outpaced Bitcoin in relative gains.

Also Read: Early Ethereum Investor Makes 149x Gains: Will July Bring a $3K Breakout?

Alek, another market analyst, also observes strong parallels to the ETH cycle in 2020. He pointed to the pattern that involves a “dead cat bounce,” a last test, and a rapid spike up to $3,500 during the last bull run.

In his opinion, Ethereum only just concluded a similar final test and could now be positioned for its next big up leg. If the pattern is to repeat itself once again, a charge toward a price of $7,000 could be underway with the current setup duplicating previous ones virtually identically.

Both Alek and KALEO are convinced that the bottom is behind ETH. Signs are that Ethereum could now enter the momentum phase of its cycle, a typical one characterized by quick, strong movements once the price is past significant levels like $2,600.

Bull sentiment was given a boost by Eric Connor, who likened Ethereum to a “powder keg” waiting to explode. Citing three big stats: a record stablecoin amount of $251 billion passing through Ethereum networks, $1.17 billion in June spot ETF flows into ETH, and decentralized exchange balances hitting a low since 2015 with just 9 million ETH left on such exchanges.

This shortage is a reflection of increased institutional demand. The wallets that contained between 1,000 and 10,000 ETH summed up to a total exceeding 800,000 ETH in June alone.

That is the most violent whale activity in seven years. Ethereum itself has been trading sharply between $2,400 and $2,600 with higher lows with declining volume, a setup that in the past has resulted in violent price swings.

As liquidity dries up, demand intensifies, and structural indicators turn green, a surge above $2,600 might spark the next explosive growth in Ethereum.

Also Read: Ethereum and Cardano Price Soars, Are New All Time Highs In Sight?!