Ethereum Surges Past $4400, Targets $5000 as Supply Squeeze and Institutional Demand Fuel Bullish Rally

With 18.8 million ETH, Ethereum's exchange reserves have fallen to an all-time low—a level not reached since July 2016. This sharp decrease points to a rising trend among major holders and institutions to self-custodial wallets or participate in on-chain activities like staking and DeFi. This decline in exchange liquidity is causing a "supply squeeze" whereby reduced availability on exchanges, coupled with growing demand from DeFi, real-world asset integration, and staking,g is creating upward price pressure and promoting a bullish outlook for Ethereum, with prices recently exceeding $4,000. Rising institutional adoption and greater regulatory clarity, combined with this trend, point to possible major price volatility and rallies in the near term owing to decreased market liquidity and heavy accumulation by "smart money."

ETHUSD hits a fresh one-year high after breaking significant resistance $4400  on institutional demand.  It hits an intraday high of $4434 and is currently trading around $4423. Overall trend remains bullish as long as support $3350 remains intact. Watch out for $4500, any break above targets $5000/$6000. A robust bullish trend will only materialize above $5000.

Immediate support is around $4200. Any violation below will drag the price down to $3700/$3550/$3500/$3380/$3200/$3000. A breach below $3000 could see Ethereum plummet to $2770/$2500.

It is good to buy on dips around $4000 with SL around $3600 for a TP of $5000