Ethereum News Today: Ethereum Surges 50% in Two Weeks as Bulls Target $9,000 by 2026 on Tightening Supply and Retail Inflows

Generated by AI AgentCoin World
Friday, Jul 25, 2025 10:42 pm ET1min read
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Aime RobotAime Summary

- Ethereum (ETH) has surged 50% in two weeks, with analysts predicting a potential $9,000 target by early 2026 due to tightening supply and rising retail inflows.

- On-chain metrics show reduced circulating liquidity and increased staking, signaling diminished sell pressure and growing retail engagement.

- Valuation models indicate ETH is undervalued compared to Bitcoin, with a widening performance gap and potential for capital reallocation.

- Technical analysis supports bullish scenarios, with $4,000 as a near-term threshold and $9,000 as a potential peak by 2026 if macroeconomic conditions remain favorable.

Ethereum (ETH) has surged 50% over two weeks, reigniting discussions among analysts about its potential to reach $9,000 by early 2026. This rally has been attributed to tightening supply dynamics and increased retail participation, with technical models and historical trends reinforcing bullish sentiment. Despite trading at $3,730—23% below its 2021 peak—ETH has attracted renewed investor interest amid broader market rotations and structural shifts in the crypto landscape.

On-chain metrics highlight a shrinking supply-demand imbalance, with 28% of ETH staked (locking 34 million tokens) and exchange balances hitting 16.2 million ETH, the lowest since 2016. This reduction in circulating liquidity suggests diminished sell-side pressure, while first-time holder inflows have risen 16% since July, signaling growing retail engagement. Glassnode analysts cite these patterns as early indicators of a potential market trend reversal, noting that tightening supply and rising retail inflows could drive broader participation and higher valuations [1].

Valuation models underscore Ethereum’s undervaluation. The MVRV Z-score, which compares market capitalization to realized inflows, remains below levels associated with euphoric market tops, indicating growth potential. Relative to

Bitcoin
(BTC)—which has surged 74% over the past year while ETH dropped 28%—the performance gap has widened. Bitcoin Vector analysts argue ETH is now “under-owned, undervalued, and in catch-up mode,” a dynamic that could drive capital reallocation [2].

Technical analysis further supports bullish scenarios. XForceGlobal’s Elliott Wave model identifies ETH as entering the third impulsive wave of a five-wave cycle—a phase historically linked to trend continuation. If macroeconomic conditions remain favorable, this phase could peak near $9,000 by early 2026. A critical near-term threshold is $4,000, with a breakout potentially accelerating gains. Glassnode’s Net Unrealized Profit/Loss (NUPL) indicator, at 0.47, also suggests

Ethereum
still has room to grow before reaching euphoric levels [3].

Network activity reinforces Ethereum’s resilience. Average transaction fees have hit historic lows (0.0004 ETH per transfer), while layer 2 solutions and rising gas usage keep the network near full capacity. Post-2025 block gas limit increases have led to rapid block filling, reflecting latent demand. Transaction composition has shifted, with infrastructure protocols, rollups, and automation now driving activity, alongside rising stablecoin and “vanilla” ETH transfers [4].

Spot Ether ETF inflows have surged by $4 billion in two weeks, aligning with broader demand. However, analysts caution that while structural trends are robust, macroeconomic variables and sentiment will ultimately determine whether the $9,000 target materializes [5].

Source:

[1] [ETH bulls target $9K: Does the data support the lofty price target?](https://coinmarketcap.com/community/articles/6883fc02f4dca2206ba47313)

[2] [Ethereum Analysts Bullish on $9K Target Amid Market Surges](https://coinmarketcap.com/community/articles/68843da43ec7993ab9bbf8d7/)