Key takeaways:
Ethereum’s onchain activity is structurally higher, signaling durable growth.
Institutional inflows and RWA tokenization are major catalysts for ETH demand.
Technicals suggest a potential bottom near $4,100 to $4,250.
Ether’s (ETH) onchain activity has entered what analysts termed a “new normal,” with sustained network engagement and rising institutional flows providing the clearest fundamental catalyst yet for a bull market continuity.
Data from CryptoQuant shows Ethereum’s Internal Contract Calls, a metric tracking complex network interactions such as DeFi and real-world asset (RWA) tokenization, has undergone a structural shift since mid-July. The daily average has climbed to over 9.5 million from 7 million, signaling a durable increase in ecosystem depth rather than a short-term speculative rise.
Analysts attribute the surge to three converging factors: regulatory clarity around stablecoins in the US, record institutional inflows into spot Ether ETFs, and the rise of a so-called “treasury war” among corporations accumulating ETH as a long-term asset.
These trends have reshaped Ether’s demand dynamics, driving both gas usage and staking participation to their highest levels in 2025.
That growth is mirrored in the expanding RWA sector. Data from RWA.xyz showed that the value of tokenized real-world assets has ballooned to $11.71 billion in 2025 from $1.5 billion on Jan. 1, 2024, a surge of nearly 680%.
Ethereum remains the dominant base layer, commanding a 56.27% market share, nearly five times larger than ZKsync Era’s 11.83%. BlackRock’s BUIDL fund, the largest tokenized RWA product, alone accounts for about $2.4 billion on Ethereum.
Preference for the ETH network could stem from its track record of reliability with zero downtime since inception, compared to competitors like Solana, which has recorded at least seven major outages over the past five years.
Although it is important to note that the last major outrage for Solana took place in February 2024, more than a year ago.
Related: DeFi TVL hits record $237B as daily active wallets fall 22% in Q3: DappRadar
Ether could dip to $4,000, but long-term targets are higher
Ether’s dip continued to stretch, falling sharply to $4,300 on Thursday, after its fourth rejection near the $4,800 resistance in less than ten weeks. The price ceiling underlined the market’s ongoing hesitation at higher levels, where liquidity remains heavily concentrated.
Following a brief attempt to stabilize around $4,400, ETH struggled to regain momentum, suggesting that short-term sentiment remains cautious. The price continued to oscillate between higher time frame range highs and lows, indicating that traders are largely interacting around established liquidity zones rather than initiating new trend formations.
On the technical front, Ether appears to be approaching a critical support band between $4,100 and $4,250, which aligns with both daily and four-hour order blocks, usually linked with high buying activity. The relative strength index or RSI on the four-hour chart is nearing oversold territory, hinting at the potential for a short-term bottom formation.
Trader Crypto Caesar noted that while a dip below $4,000 remains possible, it could serve as a final shakeout before a surprise recovery toward $10,000 later this month.
Supporting the bullish long-term view, investor Jelle pointed to Ether’s breakout from a megaphone pattern, a structure that often precedes significant upside moves. The trader added,
“$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 contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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Cointelegraph by Biraajmaan Tamuly