Ethereum (ETH) recently surged past $3,800, marking a 50% rally in July 2025 — its highest level in over 7 months.

🔧 Key Drivers Behind the Price Spike:

✅ Pectra Upgrade (May 2025):

Ethereum activated its major Pectra hard fork, including:

Increased validator cap to 2,048 ETH

Smart wallet improvements

Better Layer‑2 scaling support

This upgrade enhanced both network performance and developer functionality.

✅ Institutional Interest Rising:

Asset manager Bitwise expects over $20B in ETH inflows through spot ETFs, creating a 7:1 demand-to-supply imbalance. Institutions are increasingly seeing Ethereum as a “programmable money” base layer.

✅ Regulatory Support:

The U.S. recently passed pro-crypto legislation (like the GENIUS Act) and ETH spot ETFs gained preliminary approval — boosting investor confidence.

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📈 Price Forecasts:

End-2025: $5,000 – $6,500

2026 Outlook: $7,500 – $8,000 (bullish scenarios)

Experts highlight Ethereum's strong network fundamentals, rising adoption, and Layer-2 ecosystem as key long-term bullish indicators.