Ethereum News Today: Ethereum's On-Chain Revival Amid Institutional Exodus

Ethereum (ETH) surged 3% in the past 24 hours to $3,857.27 as on-chain activity and technical indicators pointed to a potential bull market revival, according to recent data. The price rebound coincided with a modest improvement in market sentiment, as the Crypto Fear & Greed Index rose to 33 from 29, still in the "fear" territory but showing early signs of stabilization, according to an InsideBitcoins report. Analysts attribute the optimism to surging on-chain metrics, including record-breaking stablecoin transactions and DeFi engagement, which suggest Ethereum's ecosystem is regaining traction after a recent slump.

Tom Lee, chairman of BitMine, emphasized that Ethereum remains in a "supercycle" driven by robust on-chain fundamentals. He highlighted a surge in stablecoin demand and Ethereum transaction volume hitting an all-time high, linking these trends to potential re-pricing before year-end, according to a Coinotag article. "Sustained on-chain momentum could precede a meaningful price response," Lee told CNBC, urging investors to monitor ETH metrics and stablecoin flows as leading indicators.

Ethereum's on-chain activity has reached a five-month peak, according to a separate Coinotag report, with daily active addresses climbing to 550,000 and gas usage reflecting heightened DeFi interactions, smart contract deployments, and stablecoin transfers. Stablecoins like Tether (USDT) and USD Coin (USDC) dominate network activity, while DeFi protocols burn approximately 48 ETH daily in transaction fees. The resurgence aligns with Ethereum's post-Merge energy efficiency gains, making it more attractive for high-volume applications.

The price recovery also coincided with a strategic shift in institutional tokenization. BlackRock and Securitize restructured the BUIDL fund, reducing Ethereum exposure by nearly 60% and redistributing assets to Avalanche, Aptos, and Polygon, according to a Crypto Economy report. The $2.8 billion fund, which initially launched exclusively on Ethereum, now maintains a multi-chain strategy, reflecting broader market diversification efforts. Despite this, Ethereum still holds 53% of the total value in tokenized real-world assets (RWAs), underscoring its foundational role in the sector.

Technical analysis suggests Ethereum is testing key resistance levels. The price remains above the 200-day simple moving average ($3,341.15) but faces a critical hurdle at the 50-day SMA ($4,180.90). The relative strength index (RSI) at 43.13 indicates ETH is neither overbought nor oversold, leaving room for further gains if buyers sustain momentum, the InsideBitcoins piece noted. Analysts project an 11–19% price increase through November, with a potential breakout toward $4,500 if bullish trends continue.

However, risks persist. Liquidatable positions in DeFi lending protocols have doubled to $2.2 billion, and Layer 2 networks, while capturing 15% of Ethereum's economic output, highlight ongoing scalability challenges. Regulatory uncertainties and Bitcoin's volatility could also dampen ETH's rally.