Ethereum Update: As ETH Rises, Analyst Discusses Why Supply Shortage Appears ‘Unavoidable’
Ether (ETH) ventured into new territory Sunday, surpassing $4,900 on Coinbase at 5:40 p.m. UTC and breaking its previous record of $4,867 set on Nov. 8, 2021. The five-year ETH-USD price chart from TradingView illustrates a significant long-term breakout: ETH has definitively exceeded the 2021 high after a prolonged consolidation, with no historical resistance levels to reference. This scenario exemplifies price discovery—where the market establishes new highs based purely on psychology and order flow rather than previous chart resistance.
Five-year ETH-USD Chart for Coinbase From TradingView
The 5-day view provides further insights. Following a rapid ascent from the mid-$4,700s, ETH overcame the $4,900 mark and reached an intraday high around $4,946.90. At the moment the chart was captured—6:48 p.m. UTC—the last price stood at approximately $4,941.57. This pattern indicates that buyers absorbed supply near the previous ceiling, resulting in a new peak, a classic breakout indicator.
Five-day ETH-USD Chart for Coinbase From TradingView
Analyst Miles Deutsher assessed the situation, noting that “BTC is exhausted, ETH isn’t.” Essentially, he highlights the relative momentum: while Bitcoin’s rallies have stalled near recent highs, Ether has just entered price discovery. When an asset is described as “exhausted,” it typically suggests that attempts to rise are weakening, with consistent selling during upward pushes; conversely, “isn’t” denotes stronger follow-through, fresh peaks, and active dip-buying. Traders frequently shift focus to the asset displaying greater relative strength as the leading one falters.
Crypto Rover emphasized the supply dynamics on exchanges. “Exchange reserves” refer to the coins held in wallets managed by centralized trading platforms. A declining trend in these balances indicates fewer coins available for immediate sale. If demand increases when liquid supply diminishes, prices can accelerate as buyers need to bid higher to retrieve coins back into circulation. This mechanism supports the notion of a “supply shock”—though not a definitive prediction of price increases, it creates conditions where scarcity can amplify moves once momentum builds.
Michaël van de Poppe provided a risk assessment, highlighting the unusually large weekly candlestick and cautioning that weekend breakouts often retract when liquidity normalizes at the week’s start. The underlying principle is straightforward: weekend order books may be thinner, enabling moves to extend more easily; however, when full participation resumes on Monday, prices may retest the breakout area to confirm it as support before trending again. Thus, a pullback towards this breakout zone would not, on its own, nullify the larger bullish trend depicted in the 5-year chart.
