Etheruem (ETH) broke its previous ATH of 2021 in the past weeks, surpassing $4,900 and setting a new ATH.
However, this was short-lived, and Ethereum fell to $4,200 amid the overall market correction.
However, while analysts noted that the decline in ETH would be short-lived, Swiss cryptocurrency bank Sygnum Bank analyzed the main catalysts for the rise in Ethereum.
Accordingly, Sygnum analysts said that Ethereum’s renewed bullish momentum is due to a combination of improving fundamentals, decreasing supply, and increasing demand due to network upgrades.
Sygnum said that Ethereum's weak performance between 2022 and 2024 and in the first half of 2025, combined with a supply shock, increasing institutional demand, and fundamental and regulatory developments, led to a rapid U-turn and reached record highs approximately four years later.
Analysts stated that the most important catalyst for this rise was the Pectra rise and said:
Since the Pectra upgrade, the Ethereum price has increased by approximately 140%, compared to Bitcoin's 15% and Solana's 42%. This increase was due to the smooth execution of the Pectra upgrade, which added staking and other scaling improvements.
Another bullish catalyst was rising demand from ETFs and DATs, which, according to Sygnum, accounted for 8.40% of Ethereum’s market capitalization.
According to SoSoValue, ETFs have accumulated $27.73 billion, while DATs have amassed $16.02 billion, according to data from Ethereum Treasuries.
According to a recent report from Coinbase, staking services have removed approximately 30% of the Ethereum supply from circulation, causing a growing supply shortage.
At this point, Sygnum analysts also stated that the supply shock became more evident with the decrease in supply data in the stock markets, and that this was one of the important catalysts of the rise.
Analysts recently stated that Ethereum's bull run continues and that its long-term prospects are positive.
*This is not investment advice.
