Key takeaways:
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Ethereum onchain activity is structurally higher, signaling sustained growth.
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Institutional inflows and RWA tokenization are the main catalysts for ETH demand.
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Technical data suggests a potential bottom around $4,100-$4,250.
Ether (ETH) network activity has entered what analysts have called a “new normal,” with continued network engagement and rising institutional flows providing the clearest fundamental catalyst for a continued bull market yet.
Data from CryptoQuant shows that Ethereum’s internal contract calls, a metric that tracks intricate network interactions like DeFi and real-world asset (RWA) tokenization, have structurally changed since mid-July. The daily average rose to more than 9.5 million from 7 million, signaling a sustained raise in ecosystem depth rather than a short-term speculative raise.
Analysts attribute this surge to three converging factors: regulatory clarity around stablecoins in the U.S., record institutional inflows into spot Ether ETFs, and the emergence of a so-called “treasury war” among corporations accumulating ETH as a long-term asset.
These trends have changed ether demand dynamics, driving both gas consumption and market share to peak levels in 2025.
This growth is reflected in the growing RWA sector. Data from RWA.xyz showed that the value of tokenized real assets increased to $11.71 billion in 2025 from $1.5 billion as of January 1, 2024, an raise of almost 680%.
Ethereum remains the dominant underlying layer, with 56.27% of the market share, almost five times more than ZKsync Era’s 11.83%. BlackRock’s BUIDL fund alone, the largest tokenized RWA product, generates approximately $2.4 billion on Ethereum.
The preference for the ETH network may be due to its history of reliability and zero outages since its inception compared to competitors such as Solana, which has recorded at least seven major outages in the last five years.
Although it should be noted that Solana’s last major outrage occurred in February 2024over a year ago.
Related: DeFi TVL Hits Record $237 Billion as Daily Lively Wallets Drops 22% in Q3: DappRadar
Ether may fall to $4,000, but long-term goals are higher
Ether’s price decline continued to deepen, plummeting to $4,300 on Thursday, following its fourth rejection near the $4,800 resistance in less than ten weeks. The price ceiling has highlighted continued market volatility at higher levels, where liquidity remains highly concentrated.
After briefly trying to stabilize around $4,400, ETH has struggled to regain momentum, suggesting that near-term sentiment remains cautious. The price continued to oscillate between highs and lows on higher time frames, indicating that investors were largely interacting around established liquidity zones rather than initiating modern trends.
From a technical perspective, Ether appears to be approaching a critical support band between $4,100 and $4,250, which coincides with both daily and 4-hour order blocks typically associated with hefty buying activity. The relative strength index, or RSI, is approaching an oversold area on the four-hour chart, indicating the possibility of a short-term bottom.
Crypto Trader Caesar excellent that while a drop below $4,000 is still possible, it could serve as a final breakout before a surprise rebound toward $10,000 later this month.
Supporting a bullish long-term outlook, trader Jelle pointed to Ether’s breakout from a megaphone pattern, a structure that often precedes significant upward moves. Trader in addition,
“$ETH has broken out of the bullish megaphone, tested it again, shocked a bunch of people again – and now looks ready to continue. Target remains $10,000. Send.”
Related: Bitcoin price at 150,000 dollars likely after BTC anchors in the “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.