Ethereum’s breakthrough: History repeats itself, momentum is gradually rising

Source: Crypto Compound, compiled by Shaw bitchain vision

When Bitcoin takes the headlines, the entire cryptocurrency market will be closely watched.But behind the Bitcoin glory, there is a story that experienced investors know: Ethereum will eventually become the focus, and once it becomes the focus, other altcoin markets will often become active.

Now, we see this story happening again.

Data does not lie

In the past month, Ethereum prices have exceeded $4,300, reaching its highest level since the end of 2021.In a certain stage, its price rose 22% in just seven days, surpassing Bitcoin, showing new strong momentum.

More notably, Ethereum (ETH) recently broke the $4,000 resistance level that has been limiting its price for months.This is not a tentative breakthrough, but a decisive action, supported by a surge in transaction volume and institutional participation.Technical analysts now believe that if the current momentum is maintained, their target price will be between $6,000 and $8,000.

Why has Ethereum risen rapidly recently

The rise in Ethereum is not just following in the footsteps of Bitcoin—it is driven by a series of powerful catalysts of its own.

1. Institutional green light

Ethereum’s biggest leap in 2025 is the entry of spot ETH ETFs into the US market.Giants like BlackRock, Fidelity and Grayscale now offer direct investment in Ether.

The transaction volume was huge – more than $120 billion in just a few months – and the inflows remained stable.This is not just retail speculation, pension funds, wealth management institutions and corporate finance departments are all integrating ETH into their portfolios.

2. The stablecoin regulatory situation improves

The passage of the US GENIUS Act has a direct impact on Ethereum, which provides clear guidelines for stablecoins.

Why?Because most stablecoins (USDT, USDC, etc.) are mainly issued on Ethereum.The adoption of stablecoins has driven Ethereum’s transaction volume, increased demand for Gas, and consolidated its position as the preferred settlement layer for global capital flows.

3. Corporate balance sheet demand

Small and medium-sized listed companies are quietly adding ETH to their balance sheets.According to Reuters, corporate Ether holdings soared from 116,000 at the end of 2024 to nearly 1 million in mid-2025, worth about $3.5 billion.

These companies are not just buying ETH for price appreciation, they also pledge ETH to earn 3% to 4% annual returns, converting it into productive reserve assets.

4. Macro favorable factors

The broader economic background has also played a role in fueling the fire.The Fed has hinted that interest rates will be cut later this year, with risky assets ranging from stocks to cryptocurrencies being sought after.Lower interest rates make earning digital assets like pledged ETH more attractive than bonds or savings accounts.

Cycle: Bitcoin leads, Ethereum follows, altcoins chase

If we look at it from a macro perspective, Ethereum is not surprising – it fits in the pattern we have seen many times.

Phase 1 – Bitcoin Leader: Bitcoin was the first to rise, attracting institutional funds and mainstream attention.
Phase 2 – Ethereum Breakthrough: Once Bitcoin stabilizes, liquidity will turn to Ethereum.Ethereum’s percentage increase will exceed Bitcoin.
Phase 3 – Altcoin Season: As Ethereum rises, smaller altcoins also rise—and their gains tend to be far greater than Bitcoin and Ethereum.

We witnessed this in 2017 and 2021.Each rise in Ethereum marks the beginning of a wider altcoin craze.Today, the same pattern seems to be taking shape.

Why is Ethereum so critical in the cycle

Ethereum is not “another altcoin”.It is the infrastructure for most cryptocurrencies’ most important application scenarios:

Decentralized Finance (DeFi)—Billions of dollars in daily transactions, lending, borrowing and pledge proceeds are all conducted on Ethereum.
NFT and digital assets——Ethereum remains the location of the largest NFT market.
Stablecoins and payments——Most stablecoin transfer transactions are conducted on the Ethereum network.
Layer2 ecosystem——Networks such as Arbitrum, Optimism, and Base are settled to Ethereum, driving more security expenses at the base layer.

When Ethereum rises, this sends out a signal that the entire market is ready to take more risks outside of Bitcoin.

Have we entered the copycat season?

Several indicators show that the answer is yes.

Ethereum performs well: Over the past month, ETH has risen by about 54%, while Bitcoin has risen by about 10%.
Bitcoin dominance declines: Bitcoin’s share of the total market value of cryptocurrencies is declining – this is an early sign of capital rotation.
Altcoin seasonal index rises: The index tracking altcoins relative to Bitcoin strength has risen from more than 20 to more than 30 highs, showing an upward trend.

If this pattern continues, the momentum of Ethereum could trigger a chain reaction of altcoins—a situation that has historically led to some of the most violent volatility in cryptocurrencies.

What factors may disrupt the uptrend

Although the current situation seems optimistic, it is worth remembering that nothing is smooth sailing.

Regulatory variables: If U.S. or EU regulators take action against the security situation of staking, DeFi or Ethereum, development momentum may slow.
Macro impact: Unexpected inflation, geopolitical tensions or a sudden shift in Fed policy may undermine risk appetite.
Profit-breaking: After a sharp rise, traders usually take profits, triggering a sharp but short-term pullback.

For long-term investors, the key is to distinguish short-term volatility from structural drivers – because these drivers remain strong.

Why this time it may be more meaningful

Ethereum’s previous breakthroughs have not been widely accepted by institutions as they are now.In 2017 and 2021, there were no spot ETFs on the market.The company’s balance sheet has not actively increased its holdings in ETH.At that time, stablecoins settled only accounted for a small part of today.

Now, fundamentals are consistent with the periodic pattern:

Institutional capital inflows are sustainable, not speculative.
Ethereum gains through staking, allowing it to compete with traditional earning products.
The regulatory clarity of stablecoins consolidates the basic use cases of Ethereum.

This combination could make Ethereum’s next round of gains longer than previous cycles, or even stronger.

Strategic Investor Action Guide

If history repeats itself, here is the order worth paying attention to:

Bitcoin soars: We have seen this situation – Bitcoin has exceeded $120,000 and the situation has been decided.
Ethereum acceleration: It is happening – ETH breaks through the multi-year resistance level and attracts institutions to enter.
Altcoin rotation: Pay attention to Ethereum’s further breakthrough to Bitcoin (the ETH/BTC ratio rises), which will light up the green light for altcoins.
Selected investment strategies: During the active period of altcoins, the highest quality projects tend to perform better before liquidity flows to higher risk investments.

For investors who already hold Ethereum, it is crucial to maintain patience and confidence in the current market environment.For traders, focusing on Ethereum’s market dominance and the price ratio of Ethereum to Bitcoin will help seize the investment opportunity and enter smaller crypto assets in a timely manner.

The rise in Ethereum prices is not an isolated phenomenon, but part of the common rhythm of the market.Bitcoin led the market first, with Ethereum following behind showing a strong uptrend, and then the altcoin market gradually became active.

The difference in 2025 is that behind Ethereum’s breakthrough, there is practical application support, institutional infrastructure support and clear regulatory benefits, not just speculation.Such a solid foundation is enough to support Ethereum to achieve a more considerable price increase.

Learning from history, the exciting market trends in the cryptocurrency market may have just begun.