After trading steadily downward for the first four months of the year, Ethereum has rebounded strongly and is currently up more than 65% over the last 30 days.
The reason for this significant surge is largely attributed to the “overwhelming demand” from exchange-traded products (ETPs) and corporate treasuries, as noted by Bitwise’s chief investment officer, Matt Hougan, in a recent post on X. Hougan highlighted a striking comparison with Bitcoin, which has enjoyed a bullish trend for the past 18 months, primarily driven by the robust purchasing activity from ETPs and corporate treasuries. These entities have reportedly been acquiring more than 100% of all new Bitcoin being produced.
The Ethereum Demand Shock
A thread on why ETH’s price is rising and why it will continue to rise in the months ahead.
— Matt Hougan (@Matt_Hougan) July 22, 2025
Ethereum Supply and Demand
Until recently, Ethereum had not experienced the same momentum as Ether ETFs launched back in July 2024, which saw a mere $2.5 billion in inflows until mid-May. However, this landscape has changed drastically with spot ETH ETFs absorbing the asset at unprecedented levels.
According to Bitwise estimates, ETPs and corporate treasuries have collectively acquired approximately 2.83 million ETH since May 15, translating to over $10 billion at current prices—32 times the net new supply during that timeframe. Hougan anticipates that this demand trend will persist, as investors remain significantly underweight in Ethereum compared to Bitcoin. Moreover, upcoming regulations regarding stablecoins, combined with a burgeoning tokenization market for real-world assets, are expected to further enhance Ethereum’s appeal.
“Meanwhile, all signs suggest the ‘ETH treasury company’ trend will accelerate,” he stated.
“Looking forward, I can envision ETPs and treasury companies acquiring $20 billion of ETH within the next year, roughly 5.33 million ETH at today’s prices.”
He also noted that the Ethereum network is projected to produce approximately 800,000 ETH in the same period, leading to a staggering seven times more demand than supply.
Echoing this sentiment, BitMEX founder Arthur Hayes, in his latest blog post, predicted an imminent bull run for Ether, forecasting a potential price surge to $10,000 by the end of the year.
Net new ETH issuance today: ~2,468 ETH ($13 million).
Net inflows into the ETH ETFs today: ~143,905 ETH ($534 million).
The ETH ETFs bought 58x more ETH than was net issued by the network today.
Accelerate!
— sassal.eth/acc (@sassal0x) July 23, 2025
ETH Price Outlook
As of the time of writing, Ether’s price has been relatively stable over the past 24 hours, trading at $3,720. The asset has seen some consolidation at these levels after encountering resistance at $3,800 on three occasions.
Notably, Ethereum has outperformed Bitcoin over the last month, boasting an impressive 67% increase from around $2,250 in June.
The implications of this demand shock suggest a favorable trajectory for Ethereum, potentially setting the stage for remarkable price movements as we progress through the year.
The post Ethereum Demand Shock Could Send ETH to $10K This Year first appeared on CryptoPotato.
