Ethereum Price Prediction: As Ethereum Stablecoin Supply Hits $168B ATH, Tom Lee Predicts ETH ‘Supercycle’

The Ethereum price tumbled 2% in the last 24 hours to trade at $4,534 as of 12:51 a.m. EST on a 39% surge in trading volume to $34.4 billion.

This comes even as Ethereum’s stablecoin ecosystem hits a new all-time high of $168 billion, signaling a massive capital rotation into crypto’s infrastructure. 

That’s up 100% since January 2024, and a 12% gain from $149.5 billion a month ago.

The continued surge signifies a significant increase in institutional liquidity and a deepening of trust in its infrastructure as the foundational layer for DeFi.

As USDC and USDT lead the way, the increase in ETH’s stablecoin space indicates a rise in institutional adoption that may lead to an uptick in DeFi activity and a potential rise in ETH’s price.

Meanwhile, Fundstrat CIO Tom Lee believes that Ethereum is perfectly positioned to soar in the years ahead as it benefits from a stablecoin boom.

”Wall Street is choosing to do this on Ethereum,” he said in an interview with Global Money Talk. ”So Ethereum is facing a moment that what we call a supercycle, similar to what happened in 1971 when the US dollar went off the gold standard. And that moment is when Wall Street innovated financial products because the dollar became synthetic in 1971.”

But, historically, September has been a weak month for the Ethereum price. Will the current plunge continue, or can the bulls stage a comeback?

Ethereum Price Struggles Against $4,700 Resistance

The ETH price is trading near $4,534, coming off a recent rally that lifted prices close to the $4,950 mark.

The Ethereum price chart now shows the asset is entering a falling channel pattern, indicating a period of consolidation after strong gains.

Moreover, the $4,600–$4,700 zone is proving to be a tough resistance area, where sellers have consistently stepped in. 

On the other hand, the $4,450–$4,460 support zone is aligned with the rising 200-day Simple Moving Average (SMA) on the 4-hour timeframe. This creates a tightening range where a decisive breakout is likely to follow.

ETH/USD Chart Analysis: TradingView

ETH Price Indicators Point To Healthy Consolidation Before Next Move

The Relative Strength Index (RSI) has cooled to 45.93 from recent overbought levels, suggesting the market is resetting momentum without breaking its bullish structure.

If ETH holds above $4,450, the path remains open for another push toward $4,700, and a breakout there could send the price to $4,900–$5,000.

However, if sellers break through $4,450, Ethereum may revisit $4,300 support, which would extend consolidation before any new rally attempt.

Overall, Ethereum is consolidating after a breakout rally, forming a corrective handle that still favors bulls as long as support levels hold.

The next move depends on whether buyers can reclaim the $4,700 zone, which would likely allow the price of Ethereum to move to the next psychological resistance around $5,000.

Crypto analyst Nami says that if ETH manages a daily close above $4,880, it could trigger a meaningful breakout.

Data from Coingecko shows that ETH is now 8% below its all-time high (ATH) of $4,946.