Talk of an “altseason” is back on the table, and all eyes are on Ethereum. A perfect storm of events – big money finally showing up through new ETFs and a game-changing network upgrade on the way – is fueling speculation that ETH could drag the rest of the market up with it. However, it’s not a clear path, with tough competition and a shaky global economy threatening to spoil the party.
Let’s cut through the noise and look at what the charts, the blockchain data, and the big-picture trends are really telling us. Does Ethereum have the juice to launch a new altcoin bull run, or will new rivals and old problems get in the way?
Charts don’t lie – ETH looks ready to pop
When you look at Ethereum’s price chart, it feels like a spring coiling up. Whether you measure it in dollars or against Bitcoin, the patterns suggest a big move is brewing after a long period of quiet accumulation.
Against the dollar, the price is getting squeezed into a corner against the $4,000-ceiling. For weeks, it has been building pressure under this key resistance level. Traders are watching this line like a hawk. a solid break above it could unleash a flood of buying. Backing this up, a classic “golden cross” signal—where a faster price average overtakes a slower one—just lit up on the 3-day chart, a sign that often precedes strong upward trends.
If things turn south, the support will be solid around $3,610, with a stronger floor between $3,340 and $3,350.
However, the real tell for altcoin strength is how Ethereum does against Bitcoin. For years, the ETH/BTC pair was stuck in a downward trend. That trend line has finally snapped. This is a huge deal because it historically signals that money is flowing out of Bitcoin and into Ethereum, which then tends to trickle down into other altcoins. This recent strength against Bitcoin is the bedrock of the whole altseason argument.
Under the hood, Ethereum’s engine is roaring
Look past the price and you’ll see Ethereum’s network is busier than ever, a sign of a healthy and growing platform.
Source: TradingView
Even when the price was going sideways, the number of people using Ethereum every day stayed strong, holding above half a million through July 2025. This isn’t just gamblers chasing quick profits; it shows people are actually using the network for things like DeFi and NFTs, building a real-world user base.
At the same time, long-term believers are locking up their coins at a record pace. As of mid-July 2025, a staggering 36 million ETH was staked – Nearly a third of all Ethereum in existence. Since withdrawals were turned on, a net 18 million ETH has been pulled out of circulation and put to work securing the network. Fewer coins available to buy on exchanges means it takes less new money to push the price up.
Source: Beaconcha.in
People wondered if Ethereum would stay “ultrasound money” with a shrinking supply. The answer is complicated. Because the network is successfully moving traffic to cheaper Layer 2 solutions, the base layer fees are lower, meaning less ETH gets burned.
This has led to moments where the supply slightly increases. But it’s a good problem to have—it means the scaling plan is working. The system is now built to adapt. If demand on the main chain spikes, the burn mechanism can easily kick back in and make ETH deflationary again.
One-two punch – Wall Street cash and a huge tech upgrade
Two major forces are set to define Ethereum’s year – Spot ETFs and the Pectra upgrade.
Wall Street’s long-awaited Ethereum ETFs are here. After a predictable shakeout where money flowed out of Grayscale’s older, high-fee trust, new funds from heavyweights like BlackRock and Fidelity are now consistently pulling in cash. On 18 July 2025, they saw over $400 million in net inflows, marking their eleventh straight day in the green.
Guesses for how much money these ETFs will attract in their first year are all over the map, from a modest $5 billion to a wild $45 billion. Either way, it’s a brand-new gateway for mainstream money.
On the tech side, the Pectra upgrade, set to land around May 2025, is the biggest change to the network since the Merge. It packs in two critical updates. First is EIP-7702, which is all about making crypto wallets feel less like… well, crypto wallets. It will allow for simpler features like paying gas for friends or bundling transactions, tearing down a major barrier for new users.
Second, EIP-7251 will let big stakers run their operations more efficiently by pooling their validators, a move that makes staking much more attractive for large institutions.
Where the real action is – DeFi, tokenized assets, and Layer 2s
So why do people actually need ETH? Look at its ecosystem.
Decentralized Finance (DeFi) is still the heart of it all. Ethereum controls 55% of the money locked in DeFi, and ETH is the go-to asset for lending and borrowing. The popularity of liquid staking through platforms like Lido also keeps a huge amount of supply off the market.
A new and potentially massive driver is the tokenization of Real World Assets (RWAs). This is the idea of putting things like real estate, stocks, and bonds on the blockchain, and it could unlock trillions in value. Right now, Ethereum is the undisputed king of this space, hosting over 80% of all RWA projects, including BlackRock’s tokenized fund.
All of this is possible because of Layer 2 scaling networks like Arbitrum, Base, and Optimism. These platforms have exploded, now holding over $33 billion in value, and they slash transaction fees by as much as 99%. While they do reduce the amount of ETH burned on the main chain, they are essential for bringing in the next wave of users, who will ultimately rely on Ethereum’s core security.
Not a done deal?
This rally isn’t a sure thing. There are some serious obstacles in the way.
The regulatory ghost still haunts the market. The SEC has been taking a hard line, and its focus on staking services is a major reason why the new U.S. ETFs don’t offer staking rewards. This makes them less appealing than their European counterparts and could put a damper on institutional demand.
Ethereum’s throne is also being challenged. Solana, the comeback kid, has seen incredible growth in its developer community and transaction speeds, positioning itself as a legitimate high-speed alternative. At the same time, new trends in AI and DePIN (Decentralized Physical Infrastructure Networks) are pulling investor money and attention in different directions, making the market more fragmented than ever.
Finally, crypto doesn’t live in a vacuum. The world economy is a mess. Europe is cutting rates, but the U.S. Fed is holding firm because of stubborn inflation. If global markets get spooked by high interest rates or political drama, investors will likely dump risky assets like altcoins first and ask questions later.
Final take
So, Ethereum has the tech, the money, and the momentum. The charts look promising, the fundamentals are solid, and the combination of ETF inflows and the Pectra upgrade could be a powerful catalyst. The ecosystem is thriving, creating real reasons for people to own and use ETH.
But the threats are just as real. Regulators could crack down, competitors like Solana are hungry, and a global economic downturn could stop the rally in its tracks. The evidence is building for an Ethereum-led breakout. The question isn’t whether Ethereum can lead the charge, but whether it can navigate the storm that comes with it.
