Ethereum News Today: Ethereum Surges 20% as Institutional Interest and On-Chain Data Fuel Bullish Momentum

Ethereum has entered a powerful bullish phase, driven by a combination of on-chain data and rising investor confidence. The cryptocurrency's exchange supply is decreasing as long-term holders tighten their grip, signaling a strong belief in future price appreciation and limiting sell-side pressure. This trend is further supported by the MVRV and NUPL metrics, which have turned bullish, confirming Ethereum’s undervaluation and supporting a broader rally driven by smart money.

Ethereum’s price rally is aligned with critical on-chain signals. The NUPL metric revealed a key shift in sentiment during Q2 2025, marking the market bottom and signaling the return of smart money. Institutional investors began accumulating ETH, boosting confidence and reducing available supply. Consequently, ETH’s price surged, confirming growing bullish conviction. Additionally, ETH reserves on centralized exchanges keep declining, indicating that long-term holders are preparing for higher prices rather than profit-taking.

The MVRV ratio, another vital indicator, has flipped into bullish territory. This shift signals that Ethereum is undervalued relative to historical norms. Long-term holders continue to hold tightly, showing strong conviction and not exiting the market. While many retail traders wait for a pullback, on-chain trends suggest that the dip already happened. ETH under $3,000 could now be history, with price structure and sentiment having shifted dramatically. This momentum is not just price action but belief-driven, with sentiment transforming from fear to conviction. History shows that belief often sparks the strongest bull runs.

ETF inflows and the Q2 sentiment shift suggest that Ethereum’s rally is not a temporary bounce but the start of a significant bullish market phase. The optimism is widespread, with a majority of the community expressing confidence in the cryptocurrency's upward trajectory. This bullish sentiment is further supported by Ethereum's recent price surge, which has seen it outpace other cryptocurrencies, reaching above $3,200. This breakout signals a major shift in market momentum and investor focus toward altcoins and smart contract platforms.

The bullish momentum is driven by both retail investors and institutional interest. Ethereum's breakout above $3,000 indicates strong investor confidence, with ETF inflows and institutional accumulation playing a significant role. The persistent premium on certain exchanges suggests that investors are aggressively accumulating Ethereum. This institutional interest is further highlighted by the positive trend in Ethereum-based exchange-traded funds.

The surge in Ethereum's price is also attributed to massive ETF inflows and whale activity. This influx of capital has driven Ethereum's price to a six-month high, marking the largest six-month surge in its history. On-chain metrics also support the bullish shift in Ethereum. The increasing number of active addresses and the growing use of decentralized applications (dApps) on the Ethereum network indicate a rising demand for the cryptocurrency. This on-chain activity, coupled with the bullish sentiment and institutional interest, suggests that Ethereum is poised for further growth.

According to analysts' forecasts, if Bitcoin remains strong, Ethereum could test the $5,000 to $10,000 range by the end of the year. A breakout level above $4,000 would confirm the bullish cycle, with support levels providing a safety net for any potential corrections. However, it is important to note that these forecasts are based on current market conditions and may change as new information becomes available.

In conclusion, Ethereum's current momentum is built on solid fundamentals and strengthened by smart money inflows. From tightening supply to rising conviction, all signs point toward a market-wide reset. This may well be the start of Ethereum’s next historic leg up, and it’s happening faster than many expected. The bullish shift in market sentiment, coupled with institutional interest and on-chain activity, suggests that Ethereum is well-positioned for further growth. As the cryptocurrency market continues to evolve, Ethereum's role as a leading smart contract platform is likely to become even more pronounced.