The cryptocurrency market has been buzzing with excitement over Ethereum's impressive price surge, driven by massive institutional buying. According to Matt Hougan, Chief Investment Officer at Bitwise Asset Management, Exchange-Traded Products (ETPs) and corporate treasuries have collectively purchased an astonishing 2.83 million ETH since May 15, 2025. This accumulation, valued at over $10 billion based on prices as of July 22, 2025, represents a staggering 32 times the net new supply of ETH during the same period. This influx of demand explains the soaring ETH prices, highlighting a bullish trend that traders should closely monitor for potential entry points and profit-taking strategies.

Ethereum Price Analysis and Institutional Demand Driving Market Momentum

Diving deeper into the trading implications, this institutional buying spree has significantly outpaced ETH's new supply, creating a supply-demand imbalance that favors upward price movement. On July 22, 2025, when Hougan shared these estimates, ETH was experiencing robust gains, with the price climbing amid reduced selling pressure. Traders can look at key support levels around $3,000 to $3,200, where previous consolidations occurred, as potential bounce zones if any pullbacks happen. Resistance might be tested near $4,000, a psychological barrier that could signal further breakouts if breached with high volume. The 24-hour trading volume across major pairs like ETH/USDT and ETH/BTC has likely surged in response, reflecting heightened liquidity and investor confidence. This data underscores opportunities for swing traders to capitalize on volatility, especially as on-chain metrics show increased whale activity and lower exchange reserves, indicating less available supply for short-term selling.

Trading Strategies Amid ETH Supply Squeeze

For those eyeing trading opportunities, the 32x net new supply absorption by ETPs and treasuries suggests a sustained bullish outlook for ETH. Consider technical indicators such as the Relative Strength Index (RSI), which may hover above 60, signaling overbought conditions but also strong momentum. Moving averages, like the 50-day and 200-day, could provide confluence for buy signals if ETH maintains above these lines. Cross-market correlations are worth noting; for instance, if Bitcoin (BTC) continues its rally, ETH often follows with amplified gains due to its role in decentralized finance (DeFi) and smart contracts. Institutional flows into ETH-based products could also influence stock markets, particularly tech-heavy indices like the Nasdaq, where AI and blockchain integrations drive sentiment. Risk management is crucial—set stop-losses below recent lows to mitigate downside risks from potential regulatory news or macroeconomic shifts. Long-term holders might view this as a hodl opportunity, given the deflationary aspects post-Ethereum's upgrades, which reduce issuance rates.

Broader market implications extend to AI tokens and emerging crypto sectors, as Ethereum's strength often boosts sentiment in related assets like those tied to artificial intelligence protocols. If corporate treasuries continue adopting ETH as a reserve asset, similar to Bitcoin's trajectory, we could see accelerated price appreciation. Traders should watch for on-chain data, such as transaction volumes exceeding 1 million daily and gas fees rising, as indicators of network health and demand. In summary, this $10 billion ETH buy-up since May 15, 2025, positions Ethereum for potential new highs, offering savvy traders multiple avenues for gains through spot trading, futures, or options. Always verify with real-time charts and adjust positions based on volume spikes to optimize entries and exits.