Key takeaways:
Ethereum’s onchain activity is consistently higher, indicating sustainable growth.
Institutional inflows and RWA tokenization are significant drivers of ETH demand.
Technicals suggest a potential bottom in the range of $4,100 to $4,250.
Ether’s (ETH) onchain activity has entered a phase described by analysts as a “new normal,” with persistent network engagement and increasing institutional flows serving as clear fundamental catalysts for ongoing bullish market sentiment.
Data from CryptoQuant indicates that Ethereum’s Internal Contract Calls, a measure of complex network interactions such as DeFi and real-world asset (RWA) tokenization, has seen a structural change since mid-July. The daily average has risen to over 9.5 million from 7 million, signaling a lasting increase in ecosystem depth rather than a fleeting speculative spike.
Analysts attribute this increase to three main factors: regulatory clarity regarding stablecoins in the US, record institutional inflows into spot Ether ETFs, and the emergence of a “treasury war” among companies accumulating ETH as a long-term asset.
These trends have altered Ether’s demand landscape, driving both gas usage and staking participation to their highest levels in 2025.
This expansion is mirrored in the growing RWA sector. Data from RWA.xyz reveals that the value of tokenized real-world assets has surged to $11.71 billion in 2025 from $1.5 billion on January 1, 2024, reflecting a remarkable increase of nearly 680%.
Ethereum continues to lead as the dominant base layer, holding a 56.27% market share, which is nearly five times larger than ZKsync Era’s 11.83%. BlackRock’s BUIDL fund, the largest tokenized RWA product, accounts for about $2.4 billion on Ethereum.
Preference for the ETH network may arise from its history of reliability, with zero downtime since its inception, in contrast to competitors like Solana, which has experienced at least seven significant outages over the last five years.
It is noteworthy that the last major outage for Solana occurred in February 2024, over a year ago.
Related: DeFi TVL hits record $237B as daily active wallets decline 22% in Q3: DappRadar
Ether could dip to $4,000, but long-term targets are higher
Ether’s decline continued, sharply dropping to $4,300 on Thursday, after facing its fourth rejection near the $4,800 resistance in less than ten weeks. This price ceiling highlights the market’s ongoing reluctance to move higher, where liquidity remains concentrated.
After a brief attempt to stabilize around $4,400, ETH struggled to regain momentum, indicating that short-term sentiment remains cautious. The price has continued to fluctuate between higher time frame range highs and lows, suggesting that traders are focused primarily on established liquidity zones rather than initiating new trend formations.
From a technical perspective, Ether seems to be nearing a critical support zone between $4,100 and $4,250, which corresponds with daily and 4-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 potential for a short-term bottom formation.
Trader Crypto Caesar pointed out that while a dip below $4,000 remains possible, it could act as a final shakeout before a surprising recovery toward $10,000 later this month.
Supporting the bullish long-term outlook, investor Jelle noted Ether’s breakout from a megaphone pattern, a structure that often signals significant upward movements. The trader added,
“$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 contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
