Recent analysis of Ethereum prices indicates the formation of a triple bottom and record stablecoin volumes that may lead to price increases.
Ethereum's Triple Bottom
Ethereum's chart displays a triple bottom pattern that traders are closely monitoring. This pattern emerged between late August and early September, featuring three separate bounces around the $4,230 level. Each time the price reached this level, it rebounded, indicating that sellers were losing momentum. The critical level to watch is $4,540, as Ethereum has tested this resistance several times but has not been able to push higher. A close above this level could pave the way for stronger gains.
Record Stablecoin Supply
In addition to the chart pattern, Ethereum has also witnessed a new surge in its total stablecoin supply. Reports indicate that the total issued on the Ethereum network has reached $172.2 billion, marking the highest level recorded. Stablecoins are tokens pegged to the value of traditional currencies, typically the US dollar. A larger supply means more liquidity for market activities, which traders interpret as a sign of strong utility and sustained demand for Ethereum’s network. Data also revealed that 8.80% of the supply is now on Layer 2 solutions, showcasing a push to move some transactions off the main chain.
Analysts' Forecasts
With the triple bottom in play and stablecoin supply rising, analysts have suggested possible price targets. Some predict Ethereum could reach between $5,800 and $6,000 if it breaks key resistance. Others have set a higher target at around $6,200 for Q4 2025. While forecasts appear strong, risks remain as Ethereum has struggled to hold above $4,500. A successful breakout above $4,540 could establish the tone for the next upward movement.
In current conditions, traders' focus remains on key resistance levels and increasing stablecoin volumes, creating prerequisites for potential market movements in Ethereum.
