Ethereum News Today: Ethereum Surges Over 50% as ETPs and Corporate Demand Outpace Supply 32x

Ethereum’s recent price surge has sparked a shift in market sentiment, with analysts debating whether the momentum can be sustained. Over the past month, ETH has risen more than 50%, driven by robust demand from exchange-traded products (ETPs) and corporate treasury allocations. Bitwise CIO Matt Hougan attributed this rally to a "demand shock," emphasizing that ETPs and institutional buyers have absorbed 2.83 million ETH since May, worth over $10 billion [1]. This exceeds the network’s issuance by 32 times, creating a supply-demand imbalance that has fueled the price increase [1].

The surge in ETP inflows marks a departure from earlier stagnation. For months, Ethereum ETPs struggled to attract significant institutional interest, with total inflows reaching only $5 billion by mid-May. However, buying activity intensified around that time, coinciding with aggressive accumulation by corporate entities. Companies like SharpLink, an iGaming firm, and Bitmine, a mining operation, have emerged as major ETH buyers, surpassing even the Ethereum Foundation’s holdings. SharpLink’s treasury now includes 360,807 ETH, while Bitmine holds approximately 300,000 ETH [1]. These moves reflect a strategic shift toward crypto asset allocation, with corporate treasuries leveraging ETH as a store of value and a hedge against fiat volatility.

Analysts project that this demand will accelerate further. Hougan estimates that ETPs and corporate treasuries could purchase an additional 5.3 million ETH over the next year, valued at roughly $20 billion. This would outpace the network’s projected supply of 0.8 million ETH during the same period by nearly sevenfold [1]. The CIO argues that Ethereum’s market capitalization, currently 19% of Bitcoin’s, is underrepresented in ETP holdings, which hold less than 12% of assets under management compared to Bitcoin products. Closing this gap could attract significant capital inflows, reinforcing ETH’s upward trajectory [1].

However, not all observers are bullish. Peter Schiff, a vocal critic of cryptocurrency, has advised investors to shift funds from Ethereum to Bitcoin, warning that ETH’s rally is a temporary rebound within a broader bear market [2]. His stance aligns with concerns about macroeconomic pressures and regulatory uncertainties, which could dampen long-term enthusiasm. Meanwhile, the Fear & Greed Index, a sentiment indicator, has shown signs of cooling, suggesting traders are adopting a cautious posture [3].

Bullish technical indicators also support near-term optimism. Whale activity, including a $50 million ETH accumulation event, has pushed the asset to a six-month high and reinforced ascending triangle patterns [4]. On platforms like TradingView, analysts note that ETH’s position within an ascending channel and strong momentum suggest further gains are likely [6]. Corporate actions, such as Amazon and Walmart’s rumored crypto initiatives, could indirectly bolster ETH adoption by influencing retail investor behavior [8].

Despite these factors, Ethereum faces challenges. Its issuance model, which generates new tokens to compensate validators, differs from Bitcoin’s capped supply. Critics argue this could undermine long-term scarcity and market dominance. While Cardano’s 37% surge recently drew attention, it was attributed to Bitcoin’s broader rally rather than standalone strength [5], highlighting Ethereum’s entanglement with macro trends.

The path forward for Ethereum hinges on balancing technical strength with external headwinds. Corporate accumulation and ETP inflows provide a near-term tailwind, but sustainability will depend on broader market conditions and regulatory clarity. As Hougan emphasized, “demand is far outpacing new issuance,” a dynamic that could persist if institutional adoption accelerates [1]. For now, the market remains divided—some see ETH as a vehicle for continued growth, while others view it as a volatile asset in a cyclical industry.

Sources:

[1] [Is Ethereum fated for more upside? Here’s what analysts think](https://crypto.news/is-ethereum-fated-for-more-upside-heres-what-analysts-think/)

[2] [Peter Schiff urges ETH-to-BTC swap as Ethereum hits $3700](https://www.mitrade.com/insights/news/live-news/article-3-975817-20250722)

[3] [Fear & Greed Index Cooling Down — What's Next?](https://www.binance.com/en/square/post/27250885392098)

[4] [Latest ETHEREUM News, Opinions and Feed Today](https://www.binance.com/en/square/hashtag/ETHEREUM)

[5] [Cardano (ADA) surges 37% but experts believe Mutuum...](https://www.msn.com/en-us/money/savingandinvesting/cardano-ada-surges-37-but-experts-believe-mutuum-finance-mutm-will-be-the-next-crypto-to-hit-1/ar-AA1IIYFP)

[6] [Elliott Wave — Trading Ideas on TradingView](https://www.tradingview.com/ideas/elliottwaves/)

[8] [If Amazon and Walmart Sell Crypto, Should You Buy It?](https://www.aol.com/amazon-walmart-sell-crypto-buy-110132038.html)