7 key reasons why Ethereum will continue to rise in price, according to Matt Hougan
The price of Ether (ETH), the cryptocurrency of the Ethereum Network, could be far from its roof. For Matt Hougan, Bitwise Investment Director, there are seven key elements that are causing a strong imbalance between the supply and demand of ETH, which presses its upward price.
Hougan explained why he expects sustained growth in the institutional demand of this digital asset during the coming months, as well as the potential impact that this will have on cryptocurrency.
In general, the ETF al cash, corporate adoption, and the renewed interest by large investors are redrawing the ETH holders map. While Bitcoin (BTC), the main digital currency in the market, continues to position itself as a value reserve, ETH advances with its own narrative focused on technological infrastructure, intelligent contracts and support for tokenized assets, says Hougan.
According to Hougan’s analysis, the market has not yet fully adjusted its portfolios with respect to ETH. In fact, he argues that there is a sub -presentation of the asset in relation to BTC, which Leave space for capital reallocation that directly benefits the price of ETH. In addition, he creates companies that are incorporating ETH in their balances are already beginning to receive a premium in their actions.
The figures behind the institutional movement show that the demand for ETH has shot since mid -May. Hougan projects that this trend will be deepened, creating what he describes as a “demand crisis.”
Next, the seven reasons that support your argument:
- 1. Recent explosion of demand by ETF
Since May 15, 2025, ETF of Ethereum have attracted more than 5,000 million dollars. This institutional capital entry has had a direct impact on Eth’s pricewhich has risen in more than 135% in a matter of three months, as seen in the following graphic provided by TrainingView, from $ 1,500 to more than $ 3,700.
As Hougan sees it, regulated and transparent access through these financial vehicles has opened the market to investors who could not (or did not want) to participate directly, influencing the appreciation of Ethereum’s cryptocurrency.
The same has lived Bitcoin, which since their ETFs were launched, in January 2024, has risen in 165%, moving from an average of $ 45,000 to the current USD 119,100.
- 2. Crescent adoption by corporate treasury
The second element identified by Hougan is that companies, such as Bitmine and Sharplink, They have begun to integrate ETH in their treasury strategiescausing an intense accumulation of currencies that usually press the price of upward assets.
As cryptootics reported, at least 61 corporate entities are already accumulating ETH as a reserve asset, replicating the trend that Bitcoin started.
Until now, there are more than 2.3 million ETH that are in corporate hands, a stash valued at 8,650 million dollars, at the current market price, as seen in the following image provided by Strategic Eth Reserve.
For Hougan, this decision of the companies to maintain ETH, generates a structural and non -speculative demand base that supports interest in the long -term asset.
- 3. Extreme imbalance between supply and demand
Also, since mid -May of this year, both ETF emitters, and corporations, have bought around 2.83 million ETH. This, evidencing a strong demand in favor of the digital asset.
During the same period, the Ethereum network has only produced 88,000 ETH net. Consequently, the demand is 32 times greater than the available supply, which creates upward pressure on the price.
This is so since, the less there are coins in the market, the more it is valued in it, because the supply is not enough to meet the massive demand in progress.
The same has been seen in BTC and since 2009, especially since the offer of this currency is finite and limited to 21 million currencies. This has caused Bitcoin’s trend to be bullish.
- 4. Institutional infraexposition in relation to Bitcoin
Hougan also emphasizes that ETH currently represents 19% of Bitcoin market capitalization. HoweverETFs of ETH only manage 12% of assets managed by BTC ETFs.
This indicates that institutional portfolios have not yet adjusted their proportional exhibition, which leaves margin for greater purchases of ETH, according to the Bitwise manager.
In general, this is not due to a lack of interest, but for many institutional investors They are still in an initial stage of familiarization with ETH as an independent asset.
In addition, to the extent that the narrative that ETH and BTC fulfill different roles – one as a reserve of value and the other as a digital infrastructure for financial applications -, it is foreseeable that fund managers begin to diversify their holdings more.
- 5. Structural impulse by stablecoins and tokenization
On the other hand, the Ethereum ecosystem is strengthened with the use of Stablecoins and the real world assets (RWA). These applications consolidate the usefulness of the network beyond speculation, attracting new capital flows and reinforcing their role as financial infrastructure.
It should be taken into account that Ethereum is currently the main infrastructure on which most of the most used stablcoins, such as USDC and USDT, operate, as can be seen in the following defillion graph, which generates a continuous demand for the use of the network.
This activity not only represents daily transactions, but also capital movements within decentralized financial applications, international payments and services between companies.
In addition, real -world asset token – such as bonds, real estate or investment funds – has begun to consolidate as an institutional adoption trend. Companies of different items and several countries have deployed tokenized products on Ethereum, as cryptootics has been reported, which reinforces its role as a base platform for a new layer of financial services.
For Hougan, “with the growing interest in Stablecoins and Tokenization, we expect strong money tickets through the ETFs for a long time.”
- 6. The shares of companies with treasury in ETH quote with cousin
Public companies that maintain ETH in their balances are quoting above the estimated value of their cryptocurrency assets. This has generated an incentive for other companies to adopt similar strategies, strengthening the circle of institutional demand around Ethereum.
A clear example is Bitmine Immersion, a company that is quoted at Nasdaq and that in once was dedicated to Bitcoin mining. This entity has seen an 870% increase in its actions in a matter of two monthsmoving from $ 4.5 to USD 43.6, product of its ETH investment strategy as treasury assets. In this graph the increase is better appreciated:
Another example is that of Sharplink Gaming, a company that also quotes in Nasdaq, whose shares have increased by 850%, also in a matter of a month and a half, from $ 2.4 to USD 22.9. In the same way, that happened after having adopted ETH as treasury assets.
This positive performance in the actions of the two companies that accumulate ETH so far, could cause other companies They also decide to join the trend and adopt Ether as a strategic reserve.
This has already been seen in Bitcoin, when different companies decided to follow the example of Strategy, corporate entity with more than 600,000 BTC in custody that has seen its actions to play historical maximums precisely for that investment, as reported by cryptootics.
- 7. Future demand projections far superior to supply
Finally, Hougan estimates that, in the next 12 months, both the ETFs and corporate treasures could acquire up to 20,000 million dollars in ETH, equivalent to 5.33 million currencies at the current price. In that same period, the network would only generate about 800,000 ETH, according to its projections.
If your prognosis is successful, the imbalance would be 7 to 1 in favor of demand, What would potentially raise the price of digital asset. And although he did not launch possible quotes, there are analysts, such as Eric Jackson of EMJ Capital, which predict USD 10,000 prices for each ETH. Other more ambitious, such as Gert Van Lagen, believe that ETH will reach USD 18,000 in this same bullish cycle.
A clear sign on the horizon
For Matt Hougan, this set of factors represents a clear sign that ETH is not in a phase of stagnation.
He shows that, to the extent that traditional actors continue to enter the market, the price of ETH could find new consolidation zones, because, according to Bitwise’s manager, this dynamic is just beginning.
