Former Ethereum Dev Predicts an Explosive Crypto Price Rally

While the price of Ethereum (ETH) has been moving sideways in the $2,400 - $2,600 range for weeks, causing impatience for many investors, a former core developer of the project sees explosive signals quietly forming. On July 4th, Eric Conner posted an analysis listing three fundamental catalysts that he believes will soon push the price of Ethereum into a powerful rally.

1. Stablecoins: The "On-Chain Cash Engine" The first and perhaps most fundamental factor is the relentless growth of stablecoins on the Ethereum network. Conner describes stablecoins as an "on-chain cash engine" that continuously brings billions of dollars into the ecosystem. Data shows that stablecoins have seen 21 consecutive months of growth, and their monthly transfer volume now rivals that of the payments giant Visa. Every one of these stablecoin transactions consumes a small amount of ETH as a gas fee, creating real and continuous demand for Ethereum's blockspace.

2. ETF Inflows: The Gateway from Wall Street The second catalyst is the immense capital flowing into spot Ethereum ETFs. In June alone, these funds recorded a net inflow of $1.17 billion. This is just the beginning. Fund managers predict that the size of ETH ETFs will multiply several times over in the second half of 2025. This flow of capital from institutional and retail investors through regulated ETF products creates direct and sustainable buying pressure on the underlying ETH asset.

3. Dwindling Exchange Supply: A Potential Supply Shock The final, and equally critical, factor is the extremely low level of ETH supply on centralized exchanges (CEXs). According to data, the ETH balance on exchanges is currently only around 9 million, the lowest level seen since 2015. This creates a potential "supply shock" scenario. As a large amount of ETH is withdrawn from exchanges for staking or long-term storage, the available supply for sale on the market becomes extremely scarce. Any sudden increase in demand (for example, from ETFs) could cause a powerful price shock.

In conclusion, Eric Conner believes that Ethereum's current sideways phase is a classic accumulation phase. He points out that the price is quietly forming higher lows amidst low trading volume, which is often a precursor to a major move. Therefore, he predicts that if ETH can decisively break through the $2,600 resistance level, the subsequent uptrend could be very fast and powerful, fueled by the combined force of these three fundamental drivers.