- Ethereum ETFs from BlackRock and Fidelity are now live, attracting over $1 billion weekly despite ETH’s subdued market cap performance.
- Ethereum has broken out of a long-term downtrend and is now consolidating above key levels, resembling Bitcoin’s 2020 bullish chart structure.
- Major financial institutions, including JPMorgan and Goldman Sachs, have enabled ETH trading, further validating Ethereum’s position in traditional finance.
Ethereum remains below a $450 billion market cap despite notable developments, institutional backing, and strong chart patterns that mirror Bitcoin’s previous cycle.
Institutional Support Grows While Market Cap Lags
A tweet from crypto analyst Axel Bitblaze noted that Bitcoin reached a $1.3 trillion market cap during the last cycle without institutional backing. At that time, there were no ETFs, no favorable government stance, and no support from major financial firms like JP Morgan or BlackRock.
In contrast, Ethereum is now supported by multiple U.S.-listed ETFs. These include offerings from investment giants like BlackRock and Fidelity. More institutions, including JPMorgan and Goldman Sachs, are offering Ethereum trading services. Capital inflows are also increasing, with billions raised to accumulate ETH and over $1 billion entering ETH ETFs weekly.
Despite this institutional presence, ETH’s market cap remains under $450 billion. The disconnect between infrastructure progress and current valuation is drawing attention from market participants.
ETH Price Structure Resembles BTC’s 2020 Breakout
Axel Bitblaze emphasized the similarities between Ethereum’s current chart and Bitcoin’s breakout in 2020. According to the tweet, ETH has recently broken a 1.5-year downtrend and is consolidating above the breakout zone. This movement closely aligns with Bitcoin’s trajectory when it surged toward the $1 trillion mark.
Bitblaze added that while a short-term retest of the breakout could occur, it would likely offer a favorable entry point. The observation suggests Ethereum may be in the early stages of a larger move, supported by technical structure and broader investor demand.
ETH Rally Leaves Room for Revaluation
Despite Ethereum gaining over 50% in the past month, Bitblaze asserted that ETH remains undervalued. Along with high institutional purchases and more favorable regulatory landscape, many analysts predicted that the price of Ethereum would consequently adjust to those changes more accurately.
Still, ETH performs much worse than its highest values in 2021, and its ecosystem is growing. All these recent developments (ETF demand, changes in government policies, the involvement of companies) stimulate the debate that centers around the potential of Ethereum in this cycle.
