After trading steadily downward for the first four months of the year, Ethereum has rebounded strongly and is currently up more than 65% over the last 30 days.

The reason for this rip is “overwhelming demand” from exchange-traded products and corporate treasuries, said Bitwise chief investment officer Matt Hougan on X on Wednesday.

The executive compared Ethereum to Bitcoin, which, for the past 18 months, has been driven ever-upwards because ETPs and corporate treasuries “have been buying more than 100% of all the new Bitcoin being produced.”

The Ethereum Demand Shock

A thread on why ETHs price is rising and why it will continue to rise in the months ahead.

Ethereum Supply and Demand

Until recently, Ethereum had not benefited from the same trend as Ether ETFs launched in July 2024, which did not perform as well, seeing just $2.5 billion in inflows until mid-May. However, this all changed recently with spot ETH ETFs hoovering up the asset at unprecedented levels.

Bitwise estimated that ETPs and corporate treasuries have combined to buy 2.83 million ETH since May 15, more than $10 billion at today’s prices, which is 32 times the net new supply over the same time period.

Hougan expects this trend to continue because investors are “significantly underweight” in Ethereum compared to Bitcoin. Additionally, stablecoin regulations and a surging real-world asset tokenization market will boost Ethereum demand even further.

“Meanwhile, all signs suggest the ‘ETH treasury company’ trend will accelerate,” he added.

“Looking out, I can imagine ETPs and treasury companies buying $20 billion of ETH in the next year, or 5.33 million ETH at today’s prices.”

He added that the network is expected to produce roughly 800,000 ETH over the same period, which equates to seven times more demand than supply.

BitMEX founder Arthur Hayes concurred in his latest blog post on Tuesday. “The coming Ether bull run is about to tear the market a new asshole,” he said before predicting that the asset would hit $10,000 by the end of the year.

Net new ETH issuance today: ~2,468 ETH ($13 million).

Net inflows into the ETH ETFs today: ~143,905 ETH ($534 million).

The ETH ETFs bought 58x more ETH than was net issued by the network today.

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ETH Price Outlook

Ether prices have traded relatively flat over the past 24 hours with the asset changing hands for $3,720 at the time of writing.

It has started to consolidate at current levels over the past few days after hitting resistance at $3,800 three times.

ETH has outperformed Bitcoin over the past month with an epic 67% gain from around $2,250, where it traded this time in June.