Remember when everyone said Ethereum was finished? That Solana had taken the crown and ETH was yesterday’s news? Yeah, me too. Funny how fast the narrative flips when price starts moving the right way.
As I write this on December –paragraph –>
As I write this on December 5, 2025, Ethereum has quietly climbed back above $3,200 – its highest level in nearly three weeks – and something feels different this time. The usual “dead cat bounce” crowd has gone suspiciously quiet. And for good reason.
What we’re seeing isn’t just another random pump. Four separate, powerful forces are converging at once, and when you put them together, the picture for ETH over the next few months looks remarkably bullish. Some analysts are throwing around $5,000 targets like it’s nothing. Sixty percent from here? It’s starting to feel less crazy by the day.
Why Ethereum Could Be On The Cusp Of Something Big
Let me walk you through the four biggest reasons I’m paying very close attention right now – and why I think the path of least resistance for Ethereum is significantly higher.
1. The Chart Is Screaming “Breakout”
Let’s start with the most obvious – but also most important – factor: price action itself.
For the past two and a half months, Ethereum has been carving out a textbook falling wedge on the daily timeframe. If you’ve traded crypto for more than a cycle, you know exactly how this movie usually ends. These patterns resolve upward more often than not, and when they do, the measured move is roughly the height of the wedge added to the breakout point.
Do the math and you’re looking at roughly $4,800–$5,000. That’s not some random number I pulled out of thin air – it’s literally what the chart is projecting.
But it gets better.
ETH has now closed above the upper trendline of that wedge for several days running. Volume is picking up on the upside. The Supertrend indicator – one of my personal favorites – is on the verge of flipping green for the first time since early November. Even the PPO (Percentage Price Oscillator) has printed a clean bullish crossover.
In my experience, when you get this many technical confirmations lining up at the same time, you ignore them at your own peril.
Of course, nothing is guaranteed in markets. But from a pure price-action perspective, Ethereum looks as coiled as it’s been all year.
2. Investors Are Still Buying The Dip Through ETFs
Remember all the doom-and-gloom takes about spot Ethereum ETFs underperforming? Turns out reality is a little more nuanced.
Yes, the initial launch was a bit of a dud compared to Bitcoin ETFs. But something interesting has happened since: inflows never really stopped. In fact, last week alone saw more than $312 million flow into U.S. spot Ethereum ETFs, and we’re still positive this week even as Bitcoin ETFs bleed slightly.
That tells you something important: traditional finance players haven’t given up on ETH. They’re treating every dip as a buying opportunity, and the infrastructure is now in place for them to keep doing exactly that for years.
When you combine regulated ETF access with the fact that most retail investors still haven’t touched crypto yet? That’s a recipe for sustained demand that most people are severely underestimating.
3. Supply Shock Is Building Right In Front Of Our Eyes
This might be the most under-appreciated part of the entire Ethereum story right now.
Look at the data: only about 8.84% of all ETH currently sits on centralized exchanges. That’s the lowest level ever recorded. For context, Bitcoin still has almost 15% of its supply on exchanges – nearly double Ethereum’s figure.
- Staking now locks up over 34 million ETH (and growing fast)
- DeFi protocols continue to pull tokens off exchanges
- Institutions and whales are self-custodying or moving into ETFs
- Long-term holders refuse to sell
The result? Available liquid supply is shrinking dramatically while demand channels are expanding. That’s the classic setup for a supply shock – and we’ve seen what those can do to price in previous cycles.
I’ve been watching on-chain data for years, and I can’t remember the last time Ethereum looked this tight from a supply perspective. It’s actually remarkable how little selling pressure there is despite the price being up 20% from the November lows.
4. The Network Keeps Getting Better (And People Are Noticing)
Finally, we can’t ignore what’s happening under the hood.
The recent Fusaka upgrade – yeah, I had to look up how to spell that too – has materially improved network performance. Transaction finality is faster, blob space is more efficient, and the foundation is being laid for even bigger upgrades in 2026.
More importantly, Ethereum still completely dominates the two sectors that actually matter for long-term adoption:
- DeFi – over 60% market share and not even close
- Real-world asset tokenization (RWA) – BlackRock, JPMorgan, and virtually every major financial institution building here
Every other Layer 1 likes to talk about “flippening” Ethereum, but when you look at where actual economic activity is happening, there’s still only one king. And that king just got a bunch of meaningful upgrades while everyone was busy declaring it dead.
Look, I’m not here to promise you $10,000 ETH by Christmas. Markets love to make fools of anyone who gets too confident.
But when you have:
- A clear technical breakout
- Persistent institutional buying
- Historic supply contraction
- Fundamental improvements actually being delivered
…all happening at the same time?
That’s the kind of setup that has produced some of the biggest moves in crypto history.
The $4,960 year-to-date high is only about 60% away from current levels. Given everything we just walked through, that suddenly doesn’t seem so far-fetched anymore.
Ethereum has been written off more times than I can count. Maybe this time the obituary writers should wait a little longer before hitting publish.
