Key Insights:
- Ethereum price has pulled back in the past few weeks as the recent surge faded.
- The adjusted stablecoin volume neared $1 trillion in the last 30 days.
- The coin will likely rebound and retest $5,000 this month.
Ethereum price plunged into a correction after falling by 12% from the year-to-date high as the recent momentum faded and as profit-taking ensued. The ETH token was trading at $4,330, and odds are that it will pop as a key stablecoin metric nearing $1 trillion.
Ethereum Price to Rebound as Stablecoin Metrics Jump
One of the potential catalysts that may boost the Ethereum price this month is its continued growth in the stablecoin industry, a notable thing since this is the fastest-growing sector in the crypto industry.
Data compiled by Artemis shows that the total supply of stablecoins on the network soared by 12% in the last 30 days to over $153 billion. This is almost double the supply of tokens in Tron, the second-biggest chain in the industry.
The other important metric is that the number of stablecoin addresses jumped by 59% to 2.9 million. That is a sign that more users are embracing the network.
Most importantly, the adjusted transaction volume rose by almost 10% to $907 billion, making it the most active network for stablecoin transactions. Tron, the other notable chain, handled $630 billion in this period.
Stablecoin growth is important for Ethereum after the recently signed GENIUS Act in the United States. This act set the guidelines that all stablecoin issuers will be required to follow, a move that will lead to more activity in the network.
Analysts believe that the stablecoin industry is still in its infancy, with a report by Citi estimating that the supply will surge to over $1.6 trillion by 2030, a move that will benefit the Ethereum network.
Rotation from Bitcoin to Ethereum by Institutional Investors
In addition to the stablecoin industry, Ethereum continues to be the most dominant player in other areas in the crypto industry.
For example, it has become the top player in the decentralized finance industry with a market dominance of 70%. It has a total value locked (TVL) of $200 billion, much higher than Solana’s $20 billion and BSC’s $11.4 billion.
These numbers mean that Ethereum is hard to overtake by these other chains, especially because of the popularity of its dApps like Uniswap, Aave, Compound, and Sky.
Further, Ethereum has the biggest market share in the non-fungible token and real-world asset tokenization industries. For example, its RWA assets are worth $8.2 billion, giving it a market share of 53%.
These metrics likely explain why Wall Street investors have rotated from Bitcoin to Ethereum in the past few weeks. Data shows that spot Ethereum ETFs added $3.87 billion in assets last month, the fifth consecutive months of gains. They had added $5.4 billion in the previous month.
In contrast, Bitcoin ETFs suffered a $751 million outflow last month. It was the first time since March that they lost assets.
Ethereum Price Technical Analysis Points to a Rebound Soon
Meanwhile, the weekly chart shows that the ongoing pullback is a normal part of the bull run. This chart shows that the coin blasted past the resistance level at $4,084 in August. This was an important level that failed to move above at least three times since last year.
When an asset moves above a key resistance or support, it is usually normal to retest it, confirming the breakout.
Therefore, the most likely outlook is that the Ethereum price drops and retests this support at $4084, and then the uptrend resumes. If this happens, it will likely jump and retest the all-time high at $4,097 and then continue to $5,000.
On the flip side, a drop below the support at $4,084 will invalidate the bullish forecast and lead to more downside, potentially to the 50-week Exponential Moving Average (EMA) at $3,015. Such a move would imply a 30% dive from the current level.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
