ETH is showing prospects of surpassing Bitcoin to become the leading cryptocurrency.
Positive interest and pressure from large institutions, along with trading data, suggest ETH could reach $4,000 in the short term and $5,000 by the end of 2025.
- Top investors and financial experts predict ETH will overtake BTC based on adoption and trading trends.
- ETH has seen a strong increase in holding demand from large institutions and Token network activities.
- Derivative market data and ETH/BTC ratio are driving ETH prices higher in the short term.
What Does ETH Have in the Short and Long Term?
Paul Brody, global Blockchain leader at Ernst & Young (EY), notes that ETH is preparing for a major leap as many businesses and banks begin integrating ETH into their treasury after the GENIUS Act was passed. Brody points out the Tokenize trend that Robinhood is deploying on ETH Layer 2 will boost network activity, creating leverage to help ETH surpass Bitcoin in asset value.
"Ether will become a larger asset than Bitcoin."
Paul Brody, EY Global Blockchain Leader, 2025
Additionally, over $6 billion in ETH is currently held by large funds, with SharpLink Gaming and BitMine leading with over $1 billion in ETH in their treasury in just a few months. BitMine is aiming to purchase 5% of the total ETH supply to leverage the increasingly growing Staking and Tokenize trends.
What Does the ETH/BTC Indicator Say?
The ETH/BTC ratio is a direct measure of ETH's price performance compared to Bitcoin. Although it dropped to a 5-year low of 0.017, this index has recovered 72% to 0.030, showing ETH investors earned over 70% compared to BTC investors from May to July 2025.
With Bitcoin DeFi still relatively new while Ethereum leads in the DeFi field, this reinforces expectations of ETH's long-term superior performance. Technical analysts from Coinbase have also noted that ETH's perpetual contract trading volume is nearly double that of BTC in the past 24 hours, demonstrating its current strong attraction.
"Ethereum's perpetual contract trading volume is around $106 billion, accounting for nearly 37% of the global market share and double that of Bitcoin."
Coinbase Analysis Team, 2025
What Are ETH's Short-Term Price Prospects?
Sean Dawson, Research Head of Derivative platform Derive, forecasts ETH could potentially rise above $4,000 by the end of July 2025 with a 14% probability and reach $5,000 in 2025 with a 27% probability. Consensus on macro environment support, decreasing interest rates, and ETF trends have created a premise for a strong year-end surge.
"The entire second quarter and second half of 2025 could mark Ethereum's most successful period in many years."
Sean Dawson, Research Head of Derive, 2025
Meanwhile, some investors still maintain short-term risk hedging positions, with the ETH call/put option allocation ratio (+0.95%) reflecting the need to protect against price drops in the next 30 days.
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