Investing in ETHUSD ahead of rally driven by supply deficit

Firm institutional demand is now pushing Ethereum prices higher. The ETHUSD pair is trading above $3,300, having found solid ground after peaking at $3,402. The market is frozen ahead of another potential surge.

The price’s position relative to the expanding Bollinger Bands confirms the overall uptrend, which resumed after a recent correction earlier this month. ETH is currently sitting near the upper band, which typically suggests overheating conditions. However, given its steady hold in this zone amid increasing volatility, this is more likely to be a sign of strong momentum rather than an immediate reversal.

The Chaikin Oscillator provides further technical evidence of bullish strength. The indicator is in positive territory and continues to rise, signaling consistent buying pressure and growing accumulation. In the meantime, the Stochastic Oscillator, remaining neutral, points to emerging bullish momentum without the risk of extreme overbought conditions. This suggests room for a new rally before a corrective pullback sets in.

The fundamental backdrop for Ethereum is currently shaped by a strong inflow of institutional capital through ETFs. Persistent demand, driven primarily by BlackRock and other major players, is creating a structural deficit of liquid ETH supply, forming solid support for the crypto in the long run. Furthermore, the number of new wallets has recently hit a record high, and the amount of Ethereum locked in staking has exceeded 30% of the total offer. These factors reflect increasing network usage and a positive long-term outlook.

From a technical perspective, in the near future, bulls are poised to break through $3,370 and consolidate above this threshold. This could pave the way toward $3,500. The key support zone lies between $3,280 and $3,250, corresponding to the previous resistance level.

Keep in mind the following trading plan:

Buy ETHUSD in the $3,280–$3,300 range, with Take profit at $3,460 and Stop Loss at $3,125.

The forecast is valid from January 15 till January 22, 2026.