Surge in Demand for Ethereum May Propel Ethereum's Price to $10,000 by Year's End
Ethereum (ETH) is experiencing a significant surge in demand, driven primarily by increased buying from exchange-traded products (ETPs) like Ethereum ETFs and corporate treasuries. This trend, which has been ongoing since mid-May 2025, has seen ETPs and corporate treasuries collectively acquire roughly 2.83 million ETH, worth over $10 billion, surpassing the network’s net new ETH supply over the same period by a factor of 32.
This surge in demand significantly exceeds the new supply of ETH being issued by the network, creating a pronounced supply-demand imbalance. According to analysts, this imbalance is driving bullish expectations for Ethereum’s price, with targets ranging from about $8,500 to $10,000 by late 2025, and some bullish scenarios projecting even higher levels near $17,000 or above by 2026.
Accelerated Demand for Ethereum ETFs
Ethereum ETFs, which launched in July 2024, initially had modest inflows. However, recent spot ETH ETF demand has accelerated sharply, fueling this heightened buying interest. The network’s daily ETH issuance (~2,468 ETH) is heavily outpaced by inflows into ETH ETFs (~143,905 ETH daily), indicating strong accumulation pressure.
Fundamental Drivers for Rising Demand
Institutional capital inflows, long-term investor confidence, and the growing role of Ethereum in tokenization and decentralized finance are cited as fundamental drivers for rising demand. Price technicals in mid-2025 show consolidation with a likely breakout, supporting bullish forecasts with near-term resistance around $2,560 and upside targets above $2,700.
Varied Price Forecasts
Price forecasts vary among analysts. Some foresee ETH reaching $8,500 by late 2025 due to ETF demand alone, while others, considering broader institutional adoption and scaling, predict prices around $10,000 by year-end 2025 and up to $17,000 or even $30,000 in 2026 under aggressive assumptions.
In summary, the unprecedented demand from ETFs and corporate holdings is creating a significant supply squeeze, driving bullish expectations for Ethereum’s price and signaling a strong market trend favoring supply deficits and price appreciation over the near to mid term.
Recent Performance and Market Predictions
Ethereum has seen a strong rebound, up more than 65% over the last 30 days. Matt Hougan, Bitwise chief investment officer, stated this on X on Wednesday. Arthur Hayes, BitMEX founder, predicts that Ether will hit $10,000 by the end of the year.
Stablecoin regulations and a surging real-world asset tokenization market are expected to boost Ethereum demand further. Ether has outperformed Bitcoin over the past month, with an epic 67% gain from around $2,250, where it traded this time in June.
However, it's important to note that Ether prices have traded relatively flat over the past 24 hours, with the asset changing hands for $3,720 at the time of writing.
Investors should exercise caution and conduct thorough research before making investment decisions. This article is for informational purposes only and should not be taken as financial advice.
- The accelerated demand for Ethereum ETFs, which were initially modestly successful upon launch in July 2024, has recently surged, largely due to increased buying from exchange-traded products (ETPs) and corporate treasuries.
- The blockchain technology behind Ethereum, coupled with institutional capital inflows, long-term investor confidence, and the growing role of Ethereum in tokenization and decentralized finance, are fundamental drivers for the rising demand for the crypto.
- Bitcoin, while experiencing its own growth, has been outperformed by Ethereum over the past month, with ETH seeing a significant surge of more than 65% compared to Bitcoin's gains. Analysts like Matt Hougan and Arthur Hayes are bullish on Ethereum's price, predicting it to reach $10,000 by the end of 2025, continuing the trend of Ethereum price outperforming Bitcoin.
