ETH’s Bull Run Explained: Bitwise CIO Cites Strong Demand as Catalyst

Bitwise CIO Sees ‘Demand Shock’ Driving ETH Higher as Treasury and ETF Buying Surges

Ethereum’s rally could have deeper roots than market sentiment, says Bitwise Asset Management CIO Matthew Hougan, who highlights a growing institutional demand-supply imbalance that could fuel further price appreciation.

In a post on X Tuesday, Hougan described Ethereum as undergoing a “demand shock” as corporate treasuries and newly launched spot Ether ETFs dramatically ramp up purchases. Since mid-May, these players have absorbed approximately 2.83 million ETH — valued near $10 billion — while only 87,000 ETH have been newly issued, according to Hougan’s estimates.

“When demand outpaces supply by 32 to 1, price tends to rise,” Hougan wrote, pointing to a fundamental supply crunch.

Ethereum Catches Up to Bitcoin’s ETF Momentum

While Bitcoin has been riding institutional inflows via ETFs since early 2024, Ethereum lagged behind. Spot ETH ETFs went live in July 2024 but saw muted demand through the first half of 2025, with just $2.5 billion in inflows and holdings of 660,000 ETH — nearly matching the 543,000 ETH minted over that span.

“There were no major Ethereum treasury holders at that point,” Hougan noted. But that has changed rapidly in recent months.

Corporate Treasury Participation Accelerates

Public companies such as BitMine Immersion Technologies (BMNR) and SharpLink Gaming (SBET) have since stepped in, acquiring significant ETH positions and staking to generate yield. Combined with an acceleration in ETF flows, these actions have pushed Ethereum into a potential long-term supply squeeze.

Hougan projects that if current trends continue, total institutional purchases could hit $20 billion (about 5.33 million ETH) over the next year — against a projected issuance of just 800,000 ETH.

“ETH isn’t Bitcoin — it doesn’t have the same hard cap — but in the short term, the impact of massive demand with limited issuance is just as powerful,” Hougan wrote.

ETH Market Snapshot and Technicals

At the time of writing, ETH is trading at $3,658, down 0.69% over 24 hours. But the broader trend remains bullish:

• +15.8% in the past 7 days
• +40.1% in 14 days
• +62.5% over the past month

Technical Insights (July 22–23):

• ETH moved within a $134 range, between $3,763.70 and $3,629.35
• Heavy resistance appeared at $3,750–$3,760, where institutional selling increased
• ETH dipped 1% into the close, ending at $3,661.35
• The $3,700 zone is acting as a key pivot level, flipping between support and resistance
• Trading volume surged above $3,740, hinting at near-term distribution and consolidation

Conclusion

With Ethereum’s fundamentals tightening and institutional interest rising sharply, Bitwise’s Hougan believes ETH is only at the beginning of a longer-term rally — one backed not just by sentiment, but by real capital flows and market structure.