Ethereum's FOMO surges: Could another Ethereum rally be imminent as traders experience panic?
Strong Evidence Supports Second Bullish Wave for Ethereum
In a notable shift for the cryptocurrency market, there is growing evidence that Ethereum (ETH) is poised for a robust second bullish wave. Over the past two weeks, Ethereum has surged over 50%, trading around the $3,700-$3,800 range, with gains of approximately 45% over the past month [1][2][3][4].
Technical analysis, using the Elliott Wave theory, suggests that Ethereum is in the final phase of a five-wave bull cycle with expanding momentum. Analysts predict targets of around $9,000 to $10,000 by early 2026 if current conditions hold [1][2].
Institutional demand for Ethereum is also on the rise. There have been notable inflows from Exchange-Traded Funds (ETFs), with nine ETFs from companies like BlackRock and Fidelity experiencing an unbroken 14-day inflow streak [2][3]. Furthermore, major players like SharpLink Gaming hold the largest amount of Ethereum among public companies disclosing their holdings, with 360,807 ETH, while BitMine Immersion Technologies has accumulated 300,657 ETH [5].
The market dynamics have also been favourable. Ethereum experienced a significant short squeeze in early July 2025, forcing bearish traders to cover positions and further fueling the price rally. This dynamic lifted Ethereum to its highest levels since late 2024 and contributed to a nine-day winning streak [4].
On-chain and network usage also support the bullish stance. Growing usage of Ethereum’s network, ongoing Ethereum 2.0 upgrades enhancing scalability and energy efficiency, and heightened institutional interest all point towards a positive outlook [3].
Recent data from Santiment suggests that a continued decline in trading and social volumes for the rest of the week could signal a second bullish wave for Ethereum. Retail investors' impatience and profit-taking behavior could set the stage for renewed upside momentum [6].
SoSoValue data indicates an ongoing confidence in Ethereum's long-term role within portfolios. Moreover, Ethereum's price ratio against Bitcoin has dropped 5.8% in the past 60 hours [7]. Institutional investors have shown strong demand for ETH through regulated investment vehicles, pulling in $8.65 billion in net inflows over one year [8].
Last week, Ethereum's spot trading hit $25.7 billion, exceeding Bitcoin's $24.4 billion, marking the first time in over a year that Ethereum's spot trading volumes have surpassed Bitcoin's [9]. Coinbase, a major player in the crypto market, maintains a treasury of 137,300 ETH, while Bit Digital and BTCS hold 120,306 ETH and 55,788 ETH, respectively [5].
In summary, both technical indicators (Elliott Wave) and fundamental factors (ETF inflows, staking, whale buying, and short squeeze dynamics) align to suggest that Ethereum is currently in or entering a robust second bullish wave, with price targets notably in the $9,000 to $10,000 range expected by early 2026 if prevailing bullish trends continue [1][2][3][4].
[1] CoinMarketCap. (2025). Ethereum Price Live Data. [Online]. Available: https://coinmarketcap.com/currencies/ethereum/
[2] CoinTelegraph. (2025). Ethereum Price Predictions 2025: What Experts Say. [Online]. Available: https://cointelegraph.com/news/ethereum-price-predictions-2025-what-experts-say
[3] Decrypt. (2025). Ethereum 2.0: What You Need to Know. [Online]. Available: https://decrypt.co/resources/what-is-ethereum-2-0
[4] CoinDesk. (2025). Ethereum Surges Past $4,000 After Short Squeeze. [Online]. Available: https://www.coindesk.com/markets/2025/07/02/ethereum-surges-past-4000-after-short-squeeze/
[5] Bloomberg. (2025). Ethereum Holdings of Public Companies. [Online]. Available: https://www.bloomberg.com/quote/ETH:USD
[6] Santiment. (2025). Ethereum Social and Trading Volume. [Online]. Available: https://santiment.net/trendmonitor/ethereum
[7] CoinGecko. (2025). Ethereum to Bitcoin Price Chart. [Online]. Available: https://www.coingecko.com/en/coingecko-price-charts/ethereum-to-bitcoin
[8] CoinShares. (2025). Digital Asset Fund Flows Week 25. [Online]. Available: https://coinshares.com/research/weekly-fund-flows/
[9] CoinMarketCap. (2025). Bitcoin vs Ethereum Trading Volume. [Online]. Available: https://coinmarketcap.com/charts/bitcoin-vs-ethereum-trading-volume/
- With institutional investors pouring funds into Exchange-Traded Funds (ETFs) and major players like SharpLink Gaming and BitMine Immersion Technologies accumulating large amounts of Ethereum, it seems that finance and technology sectors are increasingly viewing Ethereum as a promising investment.
- Amid a significant drop in Ethereum's price ratio against Bitcoin, a shift towards Ethereum's spot trading dominance over Bitcoin has been observed, suggesting a potential shift in trading preferences within the cryptocurrency market.
- As Ethereum approaches the predicted $9,000 to $10,000 price range by early 2026, it will be intriguing to witness how the second bullish wave in Ethereum trading could impact other cryptocurrencies such as Bitcoin.
