- Ethereum is up over 80% in the past two months.
- ETF inflows and staking are fuelling the rally.
- Analysts say Ether still looks cheap next to Bitcoin.
Ethereum is back with a vengeance.
The cornerstone cryptocurrency of decentralised finance has surged more than 80% in the past two months, and analysts say the rally still has room to run.
“A reduced liquid supply, growing exchange-traded fund tailwinds and institutional support,” Mena Theodorou, co-founder at Coinstash, told DL News, “indicate this is more than a helping hand from macro conditions.”
Here are the major forces analysts say are powering Ethereum’s comeback and what could push it to $3,000 and beyond.
ETF inflows
Ethereum’s exchange-traded funds are finally showing signs of life.
After months of lagging behind their Bitcoin counterparts, Ether ETFs have now posted 17 consecutive days of net inflows, totalling over $1 billion, according to SoSo Value data.
BlackRock has reportedly added over $500 million in ETH during the past two weeks, according to Theodorou. She sees it as a sign that traditional finance is beginning to treat Ethereum as more than just a Bitcoin alternative.
Bernstein analysts echo that view, calling Ethereum’s value proposition “at a critical inflection point,” as Ether ETF demand begins to reflect its role in powering tokenisation, stablecoins, and onchain finance.
Staking is drying up supply
Nearly 35 million Ethereum worth over $96 billion are now staked, locking up more than 28% of the circulating supply.
That’s an all-time high, and it’s making Ethereum scarcer just as investor demand starts to climb, according to Theodorou.
With so many coins taken out of circulation, even modest inflows can move the market. Theodorou called it a “reduced liquid supply” that’s contributing to the rally.
Stablecoin momentum
Ethereum also remains the dominant network for stablecoins.
The success of Circle’s IPO, with a 270% gain in its first week and major allocations from BlackRock and ARK Invest, has reignited the stablecoin narrative.
Analysts at Bernstein argue that if stablecoin-based payment innovation is valuable, then Ethereum, the network powering those transactions, should be too.
They say that this disconnect is beginning to correct as Ethereum transitions from being dismissed as “useless crypto” to powering “useful tech,” with value finally accruing to the underlying blockchain.
Regulatory tailwinds
Signals from Washington are certainly shifting in Ethereum’s favour.
SEC Chair Paul Atkins has backed self-custody, staking, and open blockchain infrastructure, marking a sharp break from the enforcement-first approach under former Chair Gary Gensler.
“The right to have self-custody of one’s private property is a foundational American value that should not disappear when one logs onto the internet,” Atkins said during a recent SEC roundtable.
He also called for new rulemaking to support innovation in onchain finance, including conditional exemptions for DeFi builders.
Undervalued compared to Bitcoin
Despite its rally, Ethereum still trades at a fraction of Bitcoin’s market cap — around $300 billion versus $2.1 trillion.
Its ETF inflows also remain small in comparison: roughly $9 billion to Bitcoin’s $120 billion.
But Bernstein analysts argue that Ethereum’s broader utility is beginning to matter.
“There is now both utility and value accrual,” they wrote, describing Ethereum as the “decentralised computer” enabling stablecoins, tokenisation, and open financial infrastructure.
“Ethereum’s momentum suggests it could continue outperforming if DeFi and stablecoin adoption persist,” said Joel Kruger, Market Strategist at LMAX Group. He added that Ether’s latest breakout has it “thinking about a run back towards $3,500.”
Crypto market movers
- Bitcoin has lost 0.3% in value over the past 24 hours and is trading at $109,250.
- Ethereum is up 0.4% in the same period to $2,765.
What we’re reading
- Russians, nuclear technology, and a $530m stablecoin scheme: the latest DOJ arrest ― DL News
- 3 Reasons the Bitcoin Price Is Stuck, Despite the Surge in Treasury Companies ― Unchained
- Hot take: ETH will be bigger than BTC — Milk Road
- Bitcoin dev pushes controversial update to lift ceiling on nonfinancial transaction data ― DL News
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
