TLDR:
- Ethereum ETFs and treasuries have absorbed 1.6% of total supply since June, fueling demand.
- Supply on exchanges continues to drop, signaling institutional accumulation and rising staking activity.
- The ETH/BTC ratio nears a key resistance level as traders eye a breakout above $3.8K.
- 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.
Ethereum Gains Edge as Bitcoin Dominance Cools
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.
$ETH short term tailwinds > $BTC
I am of the view BTC dom topped in late June for 2025
The opportunity for $ETH (+ v select alts) to outperform $BTC (over the next 2-3 months) is the best it has been for a v long time
> Many are underestimating the extent of the tokenisation /…
— MJ (@peach_1340) August 7, 2025
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.
ETF Demand, Onchain Growth Back ETH Narrative
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.
That ETH/BTC resistance?
It’s the line between life-changing wealth and staying broke.Once it’s gone:
• $ETH blows past $5,000
• Large caps hit new highs
• Mid & low caps print 10x–20x
Timeline? September – October.
Stack now or watch from the sidelines. pic.twitter.com/oBI389AS2q— Gordon (@AltcoinGordon) August 7, 2025
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.
Still, as MJ warned, any signal of direct U.S. Bitcoin accumulation could reset the entire narrative. For now, Ethereum holds the spotlight, supported by demand, declining supply, and technical momentum.
