Ethereum ($ETH) is once again testing investor conviction. After a sharp retracement, the asset has entered what analysts are calling the “buy the dip” range.
According to crypto strategist Michaël van de Poppe, sub-$2,400 levels are a key accumulation zone before a potential rally towards $4,000.
But some in the space believe the real target could be even higher.
Twitter analyst Cyclop boldly states that $6,000 ETH is inevitable, and the reasoning goes far beyond speculative hype.
It’s rooted in deep structural changes to Ethereum’s ecosystem and supply mechanics that have unfolded quietly but significantly over the past few years.
Supply Shock in the Making
In 2021, over 90 million ETH were held on wallets. Today, that number has dropped to just 77 million. That’s a 20% reduction in available supply—a drastic decrease in potential sell pressure.
Meanwhile, Ethereum underwent a pivotal shift in September 2022 when it transitioned from an inflationary asset to a deflationary one. With EIP-1559 and the merge, ETH’s supply is actively shrinking, especially in periods of high network activity.
Ethereum’s Strengthening Fundamentals
- Pectra Upgrade: UX/UI improvements make Ethereum more accessible.
- Layer 2 Expansion: Cheap, fast L2s like Arbitrum and Optimism are live, driving scalability.
- Account Abstraction: Enables gasless transactions and smart wallets—huge for mainstream adoption.
- Restaking Revolution: A new yield layer adds security and utility.
- Institutional Entry: Giants like BlackRock, Franklin Templeton, and VanEck are building on Ethereum.
- On-Chain Tokenization: Real-world assets like treasuries, real estate, and credit markets are coming on-chain.
- Robust DeFi Infrastructure: Battle-tested protocols are still growing.
- Staking Boom: The majority of ETH is staked—and it’s sticky.
- Supply on Exchanges? Drying up.
In short, Ethereum is becoming the base layer for real-world capital flows, and the foundational tech is catching up to the vision.
Sentiment Doesn’t Match the Fundamentals
Curiously, market sentiment remains muted—even bearish—toward ETH. But this, Cyclop argues, is exactly what makes the asset so bullish.
“They’re tired of holding ETH and searching for reasons to sell instead of reasons to buy. But facts say otherwise.”
Crypto markets are famous for flipping sentiment in an instant—often after a single explosive move. If ETH makes a strong push toward or beyond $4,000, the resulting momentum could push it into parabolic territory.
In that case, the rally would be one of the most unexpected—and most hated—bull runs ever.
Conclusion
The structural fundamentals of Ethereum have never been stronger, even if the mood doesn’t reflect it. With decreasing supply, growing institutional adoption, and deflationary economics, the next leg up might not just be a recovery—it could be a launchpad to $6,000.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/ethereum-why-6000-eth-might-be-inevitable-and-key-accumulation-zone/