Ethereum’s native cryptocurrency, Ethher (ETH), appears as an asset with a solid foundation and catalyst that can carry prices at new heights in this cycle.
Financial analyst David Zanoni Throw away ETH touched his roofsupported by favorable supply and demand dynamics and the growing institutional interest in 2025.
Next, we will explore the factors that underpin this upward perspective.
The first is related to the Ethereum offer if your network has high activity. On active days, the network burns 2,800 ETH in transaction commissions, exceeding 2,700 ETH issued to the validator. This pure combustion reduces circulation supply, As demand rises, it puts upward pressure on pricesAccording to Zanoni.
Additionally, Ethereum cited Quotes (ETF) funds They are changing the way institutions access this cryptocurrencyThe analyst says.
“Most institutions, pension funds, insurance and business treasures don’t buy Ethereum in the traditional way,” he says.
ETFs simplify the purchase and sale of ETH, and are equivalent to stock trading. In fact, last August, Ethereum was integrated into a digital asset that institutional investors like. Better Bitcoin in your funds collectionas reported by Cryptootics.
This capital flow reflects the appeal of ETH to large entities seeking to diversify their wallets with high-performance assets. The demand generated by these ETF forces manages businesses to gain more ETH and drives higher prices.
Meanwhile, the approval of the US Genius Act in July 2025 has strengthened the positive panorama of Ethereum.
This law establishes rules for stablecoins that maintain the same price as the US dollar. Requires that it is supported by current assets, including cash and short-term treasure liabilities..
Additionally, emitters will force the release of details about the composition of the reserve to be regularly published and implement measures against money laundering and other risks associated with the use of these cryptocurrencies. Therefore, we are trying to boost the safety and use of these assets that strengthen the dollar domain.
It’s been since the Stablecoins market reached $284 billion Approximately 150 million operations are run by the Ethereum Network,This infrastructure strengthens ETH’s trust and demand and integrates its role in the cryptocurrency ecosystem.
Ethereum’s finance company is the new demand engine
Additionally, the emergence of financing companies at Ethereum, such as Bitmine Immersion Technologies (BMNR) and Sharplink Gaming (SBET), adds another catalyst.
These companies They accumulate ETH as part of their investment strategy, similar to what strategies do with Bitcoin.
In recent milestones, the Ministry of Finance, which includes corporations, DAOS, foundations and government, has accumulated 4 million ETHs, an increase of 3,500% since April 2025, with only 112,960 ETHs added.
The advantage of investing in Ethereum is staking, which allows you to generate passive income. This increased accumulation has increased demand for ETH, contributing to upward pressure on its prices.
Technical perspective: Alcist Signal
From a technical standpoint, Ethereum shows a promising signal. Relative Force Index (RSI), which measures price impulses; It’s 64 years old and below the overcompetitive level (80), but it’s a bullish territory (ages over 50), says Zanoni.
The indicators of convergence and divergence of mobile socks (MACDs) that show trends are also positive. The blue line passed the red line and the histogram bar passed from red to green as seen in the following graph.
“This shows that ETH is on a positive upward trend on the long-term monthly chart,” analysts say.
ETH was recovered from the historic biggest achieved last week, but investors argue. If the current cycle follows a historic pattern, “Ethereum prices have more margins to climb.”the RSI may reach the overbumple zone near the peak.
Risks to consider
However, there are risks. The current cycle may not replicate the period of the previous cycle, and the ETH may not reach the overcomplete zone.
Historic volatility with a fall of up to 80-90% requires attention. Additionally, competitors like Solana, Avalanche and Cardano can earn the ground if they develop more attractive properties.
but, Zanoni maintains his bull papers for this cycle at a conservative target price of $7,500. Analysts emphasize that supply and demand dynamics, along with institutional adoption, stubcoin and Treasury companies, position Ethereum for sustainable growth.
He also warns investors must monitor technical indicators as overcompetitive RSI could precede a major revision. For now, Ethereum appears to be using these catalysts to consolidate its position in the cryptocurrency market.
