Ethereum demonstrates an impressive resurgence after falling more than 12% in the first quarter of 2025, evidenced by a 175% increase in value since April. This article explores the reasons and future of this rise.
Ethereum’s 175% Rebound Since April
Ethereum has displayed one of the strongest recoveries in recent years. After dropping to around $1,386 in early April 2025, the cryptocurrency began a steady rise, nearly doubling by early June. As of July 20, ETH breached the $3,800 mark and continues to hold this position. In the first quarter of 2025, ETH fell by 12%, marking its worst quarter since 2022, however, the asset gained roughly 30% in the second quarter, fully offsetting earlier losses.
ETF Inflows and Reduced Supply Support the Rally
Ethereum’s rally since April has been supported by several factors, including supply and demand catalysts. In June, there were significant inflows into Ethereum-focused ETFs, attracting $1.13 billion. Network dynamics also played a role as the number of ETH staked surpassed 35 million, effectively removing 28% of the circulating supply from trading activity, which strengthened the price.
Ethereum Builds Toward Higher Throughput
Ethereum developers continue to implement key protocol upgrades, one of which is the introduction of the Pectra hard fork, which simplified network upgrade procedures. This hard fork introduced several technical improvements that enhance interaction with contracts and boost security, preparing the network for greater throughput and reduced transaction costs.
Ethereum is showcasing significant advancements and growing interest from both investors and corporations. This indicates faith in the network's potential, especially amid increasing institutional investments and new opportunities for tokenization.
