Pressure on ETH eases: two catalysts prepare the ground for a reversal
Ethereum (ETH) is going through a rough patch, but the situation could change dramatically. Market analysis points to two powerful catalysts capable of reversing the current bearish trend and returning the asset to growth. These are the technical network upgrade and institutional demand, which is already beginning to take shape.
The first catalyst is the upcoming Glamsterdam upgrade. This upgrade aims to increase the throughput of Ethereum's Layer 1 (L1) network and reduce transaction fees. It is expected to bring back institutional settlements, real-world asset (RWA) operations, and large DeFi transactions to the mainnet, which had previously migrated to L2 solutions. Increased activity on L1 will directly boost network fee revenue and, consequently, the amount of ETH burned. This could revive the narrative of the asset's deflationary model, which historically supports the price.
The second, and perhaps more significant, catalyst is the growth of institutional demand through staking ETFs and tokenization. These instruments create a steady inflow of capital, allowing investors to earn staking yields without having to manage nodes themselves. Meanwhile, part of the ETH supply is locked in staking pools, reducing the number of coins available on the market. The tokenization of real-world assets (RWA) also plays a key role: it creates demand for ETH in multiple capacities — as fuel for transactions, as collateral, and as a yield-bearing reserve asset.
The key marginal buyer of ETH today is not retail traders, but institutional giants. Major organizations such as BlackRock (BUIDL fund), JPMorgan (tokenized money market fund), PayPal (PYUSD stablecoin on ERC-20), Coinbase (Base L2 solution), and Visa (stablecoin settlements) are already actively building their infrastructure on Ethereum. They have a direct economic incentive to own the asset that powers and monetizes this system.
The network's fundamental metrics confirm this thesis. In the DeFi sector, approximately $39.6 billion is locked on Ethereum, the stablecoin volume on the network reaches $157 billion, and the active market cap of RWA stands at around $14.9 billion. The blockchain processes over $1 billion in daily volume on decentralized exchanges and about $1.8 billion in perpetual contracts.
My view: Despite the current price weakness, Ethereum's fundamental base remains strong. The combination of a technical upgrade that will enhance L1 efficiency and growing institutional adoption creates a scenario where ETH could not only recover but also show significant growth. The $10,000 target, which today seems distant to many, could be reached faster than expected as institutional capital increasingly flows into the ecosystem.