Ethereum News Today: Ethereum Enters "Belief Zone"—Could $20K Be Next?

Ethereum (ETH) is nearing key price levels as investors and analysts speculate on its next move, with technical and on-chain indicators suggesting further upside potential. Following a 13% rally on August 16, 2025, the price of Ether climbed to as high as $4,948, surpassing its previous all-time high of $4,878 set in November 2021. This surge was largely fueled by Federal Reserve Chair Jerome Powell’s Jackson Hole speech, which hinted at a potential September rate cut, increasing market optimism and pushing the September FOMC meeting rate cut probability to 91.5%.

The ETH price has entered a “belief” phase, according to on-chain data, as the long-term holder (LTH) net unrealized profit/loss (NUPL) indicator entered the “belief-denial” zone, historically associated with pre-rally conditions. This phase suggests the market is not yet in the euphoric stage typically seen at cycle peaks. Analyst Gert van Lagen noted that Ether could still reach $10,000 or even $20,000, with further price appreciation likely if ETH continues to break key resistances. The market value to realized value (MVRV) ratio, currently at 2.08, is significantly lower than previous cycle peaks, suggesting Ethereum remains undervalued relative to historical standards [1].

Technical indicators reinforce the bullish case for ETH. A bullish megaphone pattern, forming since December 2023 on the weekly chart, has a price target of $10,000, according to crypto analyst Jelle. Additionally, Ether recently retested the neckline of a rounded bottom pattern on the daily chart, confirming a breakout with a technical target of $12,130. A bull flag pattern has also resolved, with the price breaking above $4,300, potentially setting a target of $6,150 in the short term. The RSI reading of 66 indicates continued bullish momentum, supporting the possibility of reaching these levels [1].

Institutional demand for Ether is also showing strength, with spot Ethereum ETFs experiencing a net inflow of $2.55 billion month-to-date as of August 21, 2025 [1]. This trend aligns with broader market sentiment, as Ether continues to dominate exchange-traded product (ETP) inflows, with $2.9 billion in total net inflows recorded last week. The growing demand is further supported by a sharp decline in ETH supply on centralized exchanges, which has fallen to 14.9 million ETH—the lowest level since July 2016. Analysts attribute this decline to increased staking and long-term holding, reducing the supply of ETH available for trading and potentially driving up prices [1].

Despite the bullish outlook, some caution is warranted. Santiment, a crypto intelligence platform, has highlighted growing social media chatter around Fed rate cuts, reaching an 11-month high. This surge in bullish sentiment could signal a potential market top, historically associated with overbought conditions and risk of correction. Santiment analyst Brian noted that while Ethereum is positioned for a historic breakout, investors should remain cautious if the Fed’s rate cut narrative shifts. Positive funding rates and rising exchange-held Bitcoin also indicate increased short-term selling pressure, which could affect the broader market [6].

Looking ahead, Ethereum’s price trajectory remains tied to macroeconomic developments and institutional adoption. Analysts project that ETH could reach $10,000 or beyond in 2025, citing continued inflows from spot ETFs, corporate accumulation by treasury firms, and favorable regulatory developments such as the SEC’s updated stance on staking services. Meanwhile, the broader crypto market is experiencing a shift in momentum, with Ether outperforming Bitcoin in recent weeks and attracting retail investors seeking alternative growth opportunities [1].

Source: [1] Ether Price Enters 'Belief Zone' Following $5K All-Time Highs (https://cointelegraph.com/news/20k-eth-price-in-play-ethereum-belief-zone) [2] Ethereum briefly touches new high, nears $5,000 (https://finance.yahoo.com/news/ethereum-jumps-record-price-move-184709473.html) [3] ETH 'god candle' emerges amid Fed rate cut hopes (https://cointelegraph.com/news/eth-god-candle-emerges-amid-fed-rate-cut-hopes-is-dollar6k-ether-next) [4] ETH leads, BTC steady, LINK hits $27 on September Fed (https://ambcrypto.com/eth-leads-btc-steady-link-hits-27-on-september-fed-rate-cut-optimism/) [5] Rising Fed Rate Cut Chatter May Be Risky for Crypto (https://finance.yahoo.com/news/rising-fed-rate-cut-chatter-135635623.html)