- Ethereum is facing a potential supply shock as exchange balances hit a 7-year low, with institutional demand and a possible ETH staking ETF fueling bullish momentum.
- Meanwhile, Cardano is testing key resistance levels, and analysts believe it could break out toward $1 if support holds.
The crypto market is heating up again—and this time, all eyes are on Ethereum and Cardano. According to crypto analyst Dan Gambardello, Ethereum is on the verge of a major supply shock, while Cardano is testing a multi-year resistance that could lead to a bullish breakout toward $1.
Ethereum’s Exchange Balances Hit 7-Year Low
Ethereum’s supply on centralized exchanges has dropped to levels not seen since 2018. This dramatic decline in available ETH—driven by consistent withdrawals from both retail and institutional investors—could trigger a price rally if demand continues to build. Gambardello warns that such low supply levels have historically preceded sharp upward price movements.
Adding fuel to the fire, asset management giant BlackRock is reportedly urging the SEC to approve an Ethereum staking ETF within the next two weeks. If this happens, institutional adoption of ETH could explode, potentially acting as the spark for a long-anticipated Ethereum bull run.
“Ethereum is about—almost no one sees it, but we do. Institutions are here for Ethereum,” said Gambardello. His market model currently places ETH in neutral territory with a risk score of 36, but past data shows similar setups have often led to massive breakouts.
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Technical Indicators Flash Bullish Signals
Ethereum is currently trading above its 50-week moving average and testing the upper resistance of a multi-year triangle pattern. According to Gambardello, a breakout from this formation is imminent. If the 20-week moving average crosses above the 50-week, it could confirm the start of a macro bull trend not seen in months.
Cardano’s Breakout Moment?
While Ethereum steals headlines, Cardano (ADA) is quietly positioning itself for a breakout of its own. ADA is currently testing its 200-week moving average, with an inverse head-and-shoulders pattern forming on the chart. If support holds, Gambardello believes ADA could surge toward the $1 mark—reigniting bullish momentum in the altcoin space.
As institutional interest intensifies and technical setups tighten, Ethereum and Cardano could be leading the next phase of the crypto market’s evolution.