Ethereum Price Prediction – ETH Eyes $3K Breakout as JPMorgan Announces Second Treasury

Highlights:

• Ethereum remains near $2,300, while low volatility and declining exchange balances indicate strong confidence among holders.
• JPMorgan Chase is expanding its Ethereum push with another tokenized Treasury fund, strengthening ETH’s role in asset tokenization.
• The upcoming CLARITY Act markup and lower exchange supply may support a breakout, with ETH targeting $3,000 if it clears $2,421.

Ethereum (ETH), like the rest of the cryptocurrency market, is relatively quiet today. When writing, Ethereum was trading at $2303.15, up by a negligible 0.77% in the day. Ethereum trading volumes are also relatively unchanged intraday, down 2.36% to $14.35 billion. The slight drop in trading volumes points to holders’ confidence in Ethereum despite the lack of intraday price action. Looking ahead, multiple factors support growing confidence among holders in Ethereum despite the lack of price action. 

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JP Morgan Launching Second Tokenized Treasury on Ethereum

One of the factors driving investor confidence in Ethereum is its alignment with the latest technology trends. An area where Ethereum is set to shine is in asset tokenization. The latest news on this front is that JP Morgan is in the process of launching a second tokenized U.S. Treasury money market fund targeting institutions and stablecoin companies.

JPMorgan Chase & Co.’s asset management arm is deepening its push into blockchain-based finance with plans to launch its second tokenized money market fund. https://t.co/W7OTlxlY1l

— Bloomberg (@business) May 12, 2026

JP Morgan is offering this money market fund in full compliance with the US Genius Act. This is a big deal, given that asset tokenization is a fast-growing market, with all major asset classes now being increasingly tokenized. The fact that major organizations like JPMorgan are choosing Ethereum also shows it has a head start over other blockchains. The result is that the demand for Ethereum could keep going up into the future. 

Shrinking ETH Supply on Exchanges Cut Selling Pressure

Ethereum’s prospects are also driven by its shrinking supply on exchanges. Data show that, so far in May, more than 3 million ETH have been withdrawn from Binance. Other exchanges are also experiencing a similar trend where Ethereum is being withdrawn from exchanges and into cold storage wallets. Such movements are important for Ethereum because as more investors choose to HODL long term, the selling pressure on Ethereum drops.

Over 3 Million ETH Withdrawn From Binance Since Early May

“Historically, increased withdrawals from exchanges typically lead to a decrease in the supply available for sale in the spot market, which could alleviate selling pressure in the medium term.” – By @ArabxChain pic.twitter.com/xO0ZA9Jk79

— CryptoQuant.com (@cryptoquant_com) May 12, 2026

This is important, especially now that inflation data points to a possibility of the Federal Reserve holding interest rates higher for longer. Additionally, as reserves reduce on exchanges, demand could soon start driving prices higher. That’s especially because demand for Ethereum via ETFs is rising. The shrinking supply is one of the key factors that some analysts believe could send Ethereum to new all-time highs in the foreseeable future. 

Upcoming CLARITY Act Markup Could Send Ethereum Higher

At the same time, Ethereum could benefit from the upcoming vote on the CLARITY Act. Yesterday, the Senate Banking Committee published a 309-page draft of the bill. If, during tomorrow’s markup, the bill gets a nod and moves to a full Senate vote, it could trigger a rally across the cryptocurrency market.

Ethereum would likely be among the biggest gainers due to the shrinking supply as large holders increasingly choose to store in cold storage or stake. Ethereum also stands to benefit the most from the CLARITY Act thanks to its strong standing amongst major cryptocurrencies. As such, it could absorb most of the billions that could flow into the market once the bill passes. 

Technical Analysis – ETH Consolidating Ahead of CLARITY Mark Up

Ethereum continues trading in a multi-week consolidation between $2421.7 resistance and $2242.0 support ahead of the May 14 CLARITY Act markup. If CLARITY gets the nod and there is a market-wide rally, Ethereum could push through the $2421.7 resistance.

In such a case, Ethereum could hit $3018.7 in the short term. On the flip side, if the bill fails to proceed, a marketwide correction could see ETH drop through the $2242.0 support. In such a case, a correction to $1972.4 could follow in the short term.

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