Is It Ethereum's Turn to Rally? 3 Reasons This Leading Crypto Could Be About to Climb Even Higher.
Ethereum was falling sharply in the first half of the year.
It's now climbing rapidly.
There are solid reasons to suspect that the climb will continue for a good while.
10 stocks we like better than Ethereum ›
Through this past spring, Ethereum (CRYPTO: ETH), the second‑most valuable cryptocurrency, slogged along as investors fretted about scaling, regulation, and lackluster demand. Fast-forward to July, and the coin has roared back to life, forcing skeptics to ask whether the comeback has legs. It's up 56% during the past 30 days alone (as of July 28).
No crystal ball can promise where prices will stand tomorrow, but three forces are converging that make a fresh advance look plausible, so let's dive in and explore the prospects of Ethereum flying higher.
1. Reversion to the mean
Markets rarely stay depressed forever, and Ethereum was a textbook case of an oversold crypto with persistently abysmal sentiment.
From January to mid-June, its price tumbled, at one point being down by more than 50% year to date. Even diehard evangelists were starting to publicly fold their positions after years of holding. By June 20, the amount of positive social chatter about the chain was at multiyear lows -- but the recovery was already quietly underway by then.
Meanwhile, the network kept adding roughly 1 million new wallets per week, evidence that adoption hadn't stalled. That disconnect didn't last too long. Ethereum has more than doubled since April, jumping from the low $1,800s to around $3,800 as of July 28. There's also still no evidence of froth that often caps bull cycles.
In other words, the crowd is now increasingly optimistic but not exuberant, which is a setup that can support further upside so long as macro winds stay calm.
2. The Pectra update is working as intended
The second catalyst is that on May 7, Ethereum pushed the Prague‑Electra update, better known as Pectra. The update introduces higher validator staking limits, lighter wallets that feel more like regular apps and can operate smart contracts, and twice the data room for Layer 2s (L2s), which also helps with scaling the chain's throughput.
Furthermore, bigger validator limits let institutions compound staking rewards, and cheaper L2 roll‑ups translate into lower transaction fees for everyday users.
If activity rises because Ethereum is faster and less clunky, demand for the coin should increase. Bugs are always a risk after any upgrade, yet so far network stability looks solid. And that means the party for holders is likely to continue.
3. Capital is gushing in
Institutions are directing a firehose of cash toward exchange-traded funds (ETFs) that hold Ethereum, and it's having a big impact on the price.
In the week ended July 19, U.S.-based spot Ethereum funds absorbed nearly $2.2 billion, including an impressive single‑day haul of $726.7 million on July 16. Each new ETF share minted requires issuers to buy coins in the open market, shrinking supply and nudging prices higher.
Because institutions tend to build positions in stages, the first wave of buying is rarely the last. That steady purchasing activity is a structural tailwind Ethereum has never enjoyed at this scale until now.
Additionally, there are a handful of businesses that are seeking to become crypto treasuries that hold Ethereum as one of their main assets. These buyers are keen to issue new shares of their stock, as well as new debt, with the sole goal of buying and holding the coin. Though the wisdom of this approach in the long haul remains to be seen, for now these treasuries are price-insensitive buyers, and they're a big part of the reason Ethereum is climbing so stridently now in a way that it wasn't before. And, if past heydays are any indication, there will be a lot more well-heeled buyers of this type coming along before there's any kind of slowdown.
Taken together, a sentiment reset, a smoother and cheaper network, and significant inflows of capital from ETFs and treasurers tilt the odds toward more upside for Ethereum. Long‑term investors may look back on this summer as a moment when the chain's fundamentals finally started to really catch up with its promise.
Should you invest $1,000 in Ethereum right now?
Before you buy stock in Ethereum, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Ethereum wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!*
Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of July 28, 2025
Alex Carchidi has positions in Ethereum. The Motley Fool has positions in and recommends Ethereum. The Motley Fool has a disclosure policy.
Is It Ethereum's Turn to Rally? 3 Reasons This Leading Crypto Could Be About to Climb Even Higher. was originally published by The Motley Fool
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNET
a minute ago
- CNET
Patagonia's Back-to-School Sale Is Offering Up to 40% Off Essentials, but Not for Long
Nothing beats the feeling of stacking fresh notebooks in a new backpack or prepping snacks for the first day in a lunchbox with that familiar store smell. If you haven't already started ticking things off your back-to-school list, Patagonia's back-to-school sale is offering a solid chance to do so at a discount. The brand is offering up to 40% off essentials, including jackets, backpacks, tech tees and even lunch-friendly snacks. Some sale items are past-season styles but the quality holds up so it's a great chance to invest in gear that will last you a good time. Plus, Patagonia is offering free shipping on all orders above $99. Some of our top picks from the sale? The Capilene daily shirt for a comfortable, all-day wear. Available in different colors, you can snag it for $38 after a 32% discount. If your backpack needs an upgrade, the Refugio DayPack is down to $87. It features a removable padded sleeve for your laptop, a hydration hanger and several compartments for all your essentials. Hey, did you know? CNET Deals texts are free, easy and save you money. Those who are shopping ahead for the colder months might consider the Nano Puff jacket, which keeps you warm without the bulk and is a great pick. It's lightweight, made out of 100% recycled polyester ripstop shell and packs down small. You can now grab it for $167 after a sweet 30% discount in multiple colors. Prefer a laid-back style? Take a look at the Breezefarer cap or the Trucker Hat, going for $23 and $27, respectively. And if sunscreen alone doesn't cut it, the Sun Mask, designed to cover your neck, head and face, is now down to $24. There's a lot more to browse but be sure to get your orders in before the deals expire or the stock runs out. Why this deal matters Upgrading your gear can get expensive fast. Patagonia's summer sale offers a great chance to stock up on everything from outerwear and backpacks to everyday basics without paying the full price.
Forbes
2 minutes ago
- Forbes
HOW TRUMP'S TARIFFS THREATEN ITALY'S BELOVED WINES
Nobody wanted a trade war, but the price to avoid it is too high anyway. For everybody. The recent agreement reached by European Commission President Ursula van der Leyen and the US President Donald Trump has halved the proposed 30% tariffs on all European products, but it leaves a bitter taste in the mouths of all European manufacturers. For Italy the U.S. remains the single largest export market, accounting for 24% of its total export value in wine. In 2024, the annual turnover of Italian wine exports was approximately $9.15 billion. Once the agreement was announced, reactions were not long in Dissatisfaction Of The Wine Producers And The Minister's Concern According to the secretary general of Unione Italiana Vini Paolo Castelletti, even if a 15% tariff is lower than the proposed 30%, this kind of deal cannot be satisfying for anybody because it's extremely higher than the pre-tariff rate, which was almost zero. For a country like Italy, which prioritizes value for money, this is a devastating blow. The president of Consorzio Tutela Vini Valpolicella Christian Marchesini is of the same opinion. "Any duty or barrier on wine trade causes extremely significant damage to the European and Italian wine industry and to Valpolicella as well – claimed Marchesini - Pending the final negotiations, the 15% duty projected in the medium and long term would have a very serious economic impact. At present, we can say that, according to today's leaks, the uncertainty that will affect us until next autumn is just as serious." The Italian Minister of Agriculture Francesco Lollobrigida has always shown optimism about the deal, but now he admits: 'Wine is what concerns us most.' Meanwhile, the deadline of the 1st of August, when the tariffs should have been effective, has been delayed up to the 7th, although the 15% remains. Tariffs and Dollar Weakness Are A Dangerous Combination Recent studies by Confindustria, the main association representing Italian manufacturing and service companies, show that imposing US 15% tariffs on all Italian goods imported in America could cause Italy to lose €22.6 billion in exports (approximately $24.6 billion). The wine sector only would lose $520 million. The tariffs are not the only obstacle however, the dollar devaluation also complicates things. These two factors combined can make Italian wines less competitive than others in the US markets. Unione Italiana Vini (UIV), the Italian wine companies association, has recently raised the alarm: 15% tariffs penalize at least 80% of the sector. If in January 2025 (pre-tariff) the markup from the winery to the retailer was 123%, with the new tariff regime soars to 186%. As a result, American consumers ultimately pay almost twice the tariff rate in increased prices due to the compounding markup structure throughout the distribution chain. Not All The Wines Are Created Equal The Italian wines most affected by the new tariffs are those with the highest US market exposure: Moscato d'Asti from Piedmont (60% export) and red wines from this region (31%), Pinot Grigio (48%), Chianti Classico (46%) and other Tuscan DOC reds (35%), Prosecco (27%). Overall the new tariff regime will mostly affect the most popular wines, which are affordable to almost every pocket, more than the premium ones. Wines such as Brunello di Montalcino, Barolo, Amarone della Valpolicella, and Super Tuscans are already expensive to begin with, and therefore intended for high-spending consumers. Indeed, in this case, a bottle that was pre-tariffed and cost $25 ex-cellar, $55.75 on the retail shelf, and $150.00 at the restaurant, would now cost $71.50 in the wine shop and $195.00 at the restaurant. If you're a rich person, spending an extra $45 on an excellent Italian wine won't break the bank. Who Wins And Who Loses What has been reported so far are estimates data on behalf Italian wine producers. But what about their overseas trading partners? According to the UIV president Lamberto Frescobaldi, they and their customers could be the ones who will lose the most: 'The tariffs will not only affect consumption, but will also have a severe impact on the US economy, with total damages amounting to $25 billion' he said. This estimate was calculated by the UIV Observatory and is based on the direct, indirect, and induced impact of all wine in the US in the distribution, retail, and transportation phases alone. Wine America quantified this impact at $144.4 billion in its 'United States 2025 Economic Impact Study.' This figure includes not only sales revenues but also the value generated along the distribution chain, the positive effects of wages and the resulting purchasing power, and the increase in demand for goods and services in other related sectors. A significant effect, but one that would lose $25 billion with tariffs on wines at 15%. And things could even get worse: if nothing changes, the revenue loss could reach almost $1.7 billion in the next 12 months. At the time this article was written, there had not been a joint final statement yet, and the details of the deal remain unclear and subject to ratification. In short, the uncertainty keeps on reigning supreme. However, this can mean that perhaps there is still room for further negotiations. Any manufacturer in Europe is crossing their fingers and hoping for the best. With the current deal, it seems that the EU and the US have avoided a trade war, but despite the appearance, the price they could pay is significant for both.
New York Times
2 minutes ago
- New York Times
Broncos, Zach Allen agree to 4-year deal worth $102 million: Source
The Denver Broncos and star defensive end Zach Allen agreed to terms on a four-year, $102 million contract, according to a league source. The deal includes $69.5 million in guarantees and comes out to an average annual salary of $25.5 million that makes Allen one of the NFL's highest-paid defensive ends. Advertisement The deal comes one week after the Broncos signed No. 1 wide receiver Courtland Sutton to a four-year, $92 million deal. Allen last season was named a second-team All-Pro after notching a career-high 8 ½ sacks. He led all NFL defensive linemen in snaps played (911) and led all defensive players in quarterback hits (37). 'Zach has that stamina and that cardio where he's in great shape,' Broncos coach Sean Payton said this week. 'But when you look at the tape, it's hard to play on the offensive and defensive front, especially the defensive front, a lot of snaps like that. It's one of his strengths — and the versatility.' This story will be updated.
