ETH Sinks with Bitcoin, but a $10K Ether Surge? Here’s the Catch!

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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.

Ah, the endless rollercoaster of crypto! Ether’s (ETH) onchain activity, like a fidgeting child at a candy store, has entered what analysts are calling a “new normal.” What does that mean, you ask? Well, let’s break it down: we’re talking sustained network engagement and rising institutional flows. You know, the kind of thing that screams “bull market” but with all the subtlety of a bull in a china shop.

Data from CryptoQuant-yes, that trusty source-shows Ethereum’s Internal Contract Calls (don’t worry, we’ll spare you the technical jargon) have spiked since mid-July. These calls track things like DeFi and real-world asset (RWA) tokenization (fancy words for how deep the Ethereum ecosystem has gotten). And no, this isn’t just a flash-in-the-pan thing. The daily average of these calls has jumped from 7 million to a solid 9.5 million. And let’s be real: that’s not the result of a couple of bored traders in their basement.

Analysts, with their ever-knowing air, attribute this surge to three factors: first, the clarity around stablecoins in the US (oh, how we love clarity in the wild world of crypto). Second, record institutional inflows into Ether ETFs (because who doesn’t love some institutional drama?). And finally, there’s the so-called “treasury war” among corporations, all vying to hoard ETH as a long-term asset-because nothing says confidence like corporations fighting over Ethereum.

These trends are reshaping the Ether demand dynamics-driving up gas usage and staking participation to levels that would make even the most hardened crypto enthusiast gasp. It’s not just hot air-ETH is doing the heavy lifting here.

The RWA sector is following suit, with data from RWA.xyz showing a surge in the value of tokenized real-world assets. From a modest $1.5 billion at the start of 2024, it’s now ballooned to a jaw-dropping $11.71 billion. That’s nearly a 680% increase! But don’t worry-Ethereum still holds the crown as the dominant base layer, boasting a 56.27% market share. To put that into perspective, ZKsync Era is sitting at a mere 11.83%. BlackRock’s BUIDL fund, which I’m sure we all dream about owning, alone holds about $2.4 billion in tokenized RWAs on Ethereum.

The preference for Ethereum could be because it’s like that reliable friend who never cancels plans. Since its inception, Ethereum has boasted zero downtime, unlike the drama-ridden Solana, which has had at least seven major outages over the past five years. Sure, Solana’s last big meltdown was in February 2024, but who’s counting, right?

Ether Could Dip to $4,000, But Hey, Long-Term Targets Are So Much Better!

And now, the dip. Ether continued its downward journey, dropping to $4,300 on Thursday after facing rejection near the $4,800 resistance for the fourth time in less than ten weeks. What’s the deal? The market is still tentative, like that friend who can’t commit to dinner plans. Liquidity is concentrated at those higher levels, and it’s like trying to squeeze a watermelon into a teacup-just not happening.

After briefly attempting to stabilize around $4,400, ETH struggled to regain momentum. The traders? They’re huddling around familiar territory, not breaking new ground. Seems like everyone’s just waiting for the right moment to pounce-or panic.

But here’s the kicker: on the technical front, Ether’s moving toward a critical support band between $4,100 and $4,250, where there’s usually some serious buying action. The relative strength index (RSI) on the 4-hour chart is edging towards oversold territory, signaling a potential short-term bottom formation. It’s like watching a car slowly slide towards a puddle, but instead of a splash, we’re hoping for a springboard to $10,000.

Trader Crypto Caesar-because, of course, even crypto traders have titles-warned that a dip below $4,000 is still on the table. But don’t fret, it could be the last “shakeout” before an unexpected surge toward $10,000 later this month. Who wouldn’t want to see that, right?

In support of the bullish long-term outlook, investor Jelle pointed out that ETH recently broke out of a megaphone pattern-don’t worry, it’s not as terrifying as it sounds. A “megaphone” pattern often leads to big upside moves. According to Jelle,

“$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.”

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2025-10-09 22:24