Ethereum News Today: Institutional Shifts Signal Ethereum's "Belief" Takeoff

Ether’s recent price surge has triggered heightened investor interest, with market indicators and on-chain metrics suggesting the cryptocurrency is entering a “belief” phase akin to previous bull cycles. The long-term holder (LTH) net unrealized profit/loss (NUPL) indicator, which tracks the profitability of Ethereum holders who have held for at least 155 days, has entered the “belief-denial” (green) zone. This phase historically precedes significant price rallies, as noted by on-chain analyst Gert van Lagen in a recent X post. According to van Lagen, Ether (ETH) has not yet reached the euphoric phase (blue), which is typically associated with market peaks, indicating that further appreciation is possible.

The market value to realized value (MVRV) ratio also supports the bullish outlook, with a current daily reading of 2.08, significantly lower than previous peaks of 3.8 in 2021 and 6.49 in 2017. This suggests that Ethereum remains undervalued compared to historical benchmarks, with more room for price growth before unrealized profits reach extreme levels. The MVRV extreme deviation pricing bands indicate that ETH has not yet approached the uppermost band at $5,500, suggesting further upside potential [1].

From a technical perspective, Ether’s price has confirmed a bullish megaphone pattern on the weekly candle chart since December 2023, as identified by crypto analyst Jelle. The pattern implies a potential price target of $10,000. Additionally, Ether broke above a rounded bottom pattern on the daily chart, retesting the neckline at $4,100 and confirming a breakout. Analysts suggest that the next target for Ether could be $12,130, representing a 161% increase from current levels [1].

Institutional adoption and growing demand have also contributed to Ether’s recent strength. Digital asset treasury companies, such as SharpLink Gaming, BitMine Immersion Technologies, and EthZilla, have increasingly targeted Ethereum for strategic investments. Furthermore, interest in ether-based ETFs has surged, adding to capital inflows. James Butterfill, head of research at CoinShares, noted that Ethereum’s role in facilitating stablecoin transactions—potentially accelerated by the passage of the GENIUS Act—has bolstered its long-term value proposition [2].

Ethereum’s economic model further supports its resilience, as it typically yields neutral or negative net issuance of new coins, which helps constrain supply while demand increases. This dynamic is particularly relevant in the context of broader macroeconomic factors, such as potential interest rate cuts, which could further attract capital to the crypto asset class. Ether recently reached a new all-time high of $4,945.60, surpassing its previous record of $4,878 set in late 2021. This milestone underscores the growing confidence in Ethereum’s ecosystem, especially as more investors begin to appreciate the distinction between Ethereum and Bitcoin in terms of utility and economic design [2].

Analysts remain cautious but optimistic, emphasizing that while the technical and on-chain signals point to a strong upward trajectory, the market’s sustainability will depend on continued institutional adoption, regulatory clarity, and macroeconomic conditions. Given the current trajectory, Ether appears to be on a path that could see it reach $12,130 or even higher in the coming months, subject to market dynamics and investor sentiment.

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] Ether, Ethereum's coin, breaks 2021 all-time high (https://www.axios.com/2025/08/24/ether-all-time-high)