Key insights:
Ethereum’s on-chain engagement is consistently higher, indicating sustainable growth.
Institutional investments and RWA tokenization are key drivers of ETH demand.
Technical indicators suggest a potential bottom around $4,100 to $4,250.
Ether’s (ETH) on-chain engagement has reached what analysts describe as a “new normal,” with ongoing network activity and increasing institutional investments serving as the clearest foundational catalyst for a sustained bull market.
Statistics from CryptoQuant indicate that Ethereum’s Internal Contract Calls, which measure intricate network interactions such as DeFi and real-world asset (RWA) tokenization, have shifted structurally since mid-July. The daily average has risen to over 9.5 million from 7 million, pointing to a lasting enhancement in ecosystem depth rather than a temporary speculative spike.
Analysts attribute this increase to three converging factors: regulatory clarity surrounding stablecoins in the US, unprecedented institutional investments in spot Ether ETFs, and the growing trend of corporations accumulating ETH as a long-term asset in a “treasury war.”
These developments have transformed Ether’s demand dynamics, pushing both gas consumption and staking participation to peak levels in 2025.
This growth is reflected in the expanding RWA sector. Data from RWA.xyz shows that the value of tokenized real-world assets has surged to $11.71 billion in 2025 from $1.5 billion on January 1, 2024, an increase of nearly 680%.
Ethereum continues to be the leading base layer, claiming a 56.27% market share, significantly larger than ZKsync Era’s 11.83%. BlackRock’s BUIDL fund, the largest tokenized RWA product, alone represents approximately $2.4 billion on Ethereum.
The preference for the ETH network could arise from its proven reliability, with no downtime since its inception, unlike competitors such as Solana, which has experienced at least seven significant outages in the last five years.
It is worth mentioning that the last notable outage for Solana occurred in February 2024, over a year ago.
Related: DeFi TVL reaches record $237B as daily active wallets dip 22% in Q3: DappRadar
Ether may drop to $4,000, but long-term outlook remains positive
Ether’s decline persisted, sharply falling to $4,300 on Thursday, following its fourth rejection near the $4,800 resistance in less than ten weeks. This price ceiling highlights the market’s ongoing reluctance at higher levels, where liquidity is heavily focused.
After a brief stabilization attempt around $4,400, ETH struggled to regain momentum, indicating that short-term sentiment remains cautious. The price continues to hover between higher timeframe range highs and lows, suggesting that traders are mainly operating within established liquidity zones rather than initiating new trends.
From a technical perspective, Ether seems to be nearing a critical support area between $4,100 and $4,250, coinciding with both daily and four-hour order blocks typically associated with high buying activity. The relative strength index (RSI) on the four-hour chart is approaching oversold territory, suggesting the possibility of a short-term bottom formation.
Trader Crypto Caesar remarked that while a dip below $4,000 is possible, it might serve as a final shakeout before an unexpected recovery towards $10,000 later this month.
Supporting the optimistic long-term outlook, investor Jelle pointed to Ether’s breakout from a megaphone pattern, a formation that often precedes significant upward moves. The trader added,
“$ETH broke out from the bullish megaphone, retested it, shook a bunch of people out again — and now looks ready for continuation. Target remains $10,000. Send it.”
Related: $150K Bitcoin price likely after BTC anchors to a ‘high value area’: Analyst
This article does not constitute investment advice or recommendations. Each investment and trading action comes with risks, and readers should conduct their own research when making decisions.
