Main takeout:
Long -term ETH price rally depends on the creation of spot ETFs and the SEC approval of Staying to attract more investors.
AI adoption and Ether Leeum Layer -2 growth must induce the chain activity to restore the deflation image mechanism of the network.
Ether (ETH) surged 43.6% between May 7 and May 14, but the current price is still less than $ 4,868 in 2021. Some analysts claim that the current optimistic propulsion is “much bigger and more aggressive,” and raised the possibility of short -term rally to $ 5,000.
But in 2025, the catalyst for the new ETH is especially uncertain when facing competitive competition.
According to X user Adrianoferia, ETH is the “best candidate for diversifying institutions” because ETH recognizes “similar regulatory clarity and accessibility” through multiple spot exchange trading funds (ETFs).
Ether remains the only alternative to spots Bitcoin ETF.
Ether ETF, which was listed in the United States between May 12 and May 13, saw a net leak of $ 4 million. The size of the ETHER ETF market is 92% less than Bitcoin’s $ 12.5 billion, emphasizing the lack of institutional appetite for ETH -based products. As a result, some merchants wondered if ether could truly traction among professional investors.
Competitive cryptocurrency surpassed ETH in 2025, but the possibility of being included in the US -level digital asset resistance plummeted. This was far from Lobbyist, which supports XRP, SOL and ADA, at the decision of President Trump on March 2. The “Digital Asset Reserve” administration order issued on March 6 was especially careful with a clear line between Bitcoin (BTC) and other altcoins.
Ether’s best case scenario may include a lack of direct ETF competition, depending on the US Securities and Exchange Commission, which refuses to apply for several pending. According to the Bloomberg Intelligence analyst James Seyffart, the analysts also suggested that Ether ETFs can be promoted by spot creation and staying approval.
‘PECTRA’ upgrade extension improved AI adoption stage
The built -in video mechanism introduced in 2021, which was previously welcomed in the answer to Ether’s monetary policy, was designed to reduce supply growth according to network demand. However, when the focus on the scalability through the rollup is shifted, the deflation effect is greatly offset. As a result, an ether requires significant increase in onchain activities to become deflation.
The recent ‘PECTRA’ upgrade has set a step to improve the scalability by improving data transfer efficiency. According to L2BEAT, the tier -2 network activities rose 23% compared to the previous month, and the basic network led 244.2 million transactions in 30 days. If this momentum is maintained, it can help to create sustainable demand for ETH and to further differentiate Ether Reeum with the competitive platform.
relevant: Ether Liium refuses to share a 10% market share, but ETH BULLS should not be celebrated yet.
The road to ETH price of $ 5,000 is still uncertain, but artificial intelligence can serve as a powerful catalyst. Etherium advocate, Eric Conner, observed that Chatgpt prefers Ether Leeum’s class -2 infrastructure for fund management through a multi -designated contract, paying money to a merchant, settling the balance, and allocating surplus to surplus financial applications.
It is difficult to predict whether the AI driving trend will be fully developed, but the potential for wise contract activities to increase 10 times at the current level can reach. Such growth can create the best ever for ETH in 2025. Especially if institutional interest is accelerated by changing regulations that have been waiting for a long time.
This article is for general information purposes and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.