4 signs that Ethereum will have an explosive July

The crypto market in June experienced a relatively bleak period, especially in the context of global instability surrounding international tariff policies and changes in interest rates from the central banks of the United States. These factors have strongly affected the value of many cryptocurrencies, particularly Bitcoin and Ethereum.

US stocks surpass Ethereum in June

During the 30-day period ending on June 27, the S&P 500 index recorded an impressive increase of +4.25%, marking a strong recovery of the U.S. stock market. This index has overcome challenges from fierce reactions to tariff policies and reached a historic record by the end of June.

However, while US stocks have recorded outstanding growth, the value of Bitcoin shows signs of stagnation after a strong growth from 76,200 USD on August 4 to 111,600 USD on May 22, equivalent to an increase of +46% in just over a month. In June, Bitcoin saw a slight increase, but this change can be considered a positive signal in the context of a world facing many major fluctuations and geopolitical shocks.

Meanwhile, Ethereum has undergone a significant correction, dropping by up to 24% before finding support on June 22. By the end of the month, Ethereum only recorded a 2% decrease over a 30-day period, indicating that its recovery is not as strong as Bitcoin.

In fact, this is not unusual. Ethereum, with a market capitalization accounting for only about 14% compared to Bitcoin, has always been seen as a more speculative investment option. Therefore, this cryptocurrency tends to move more vigorously than Bitcoin, with larger percentage changes.

This means that when the market declines, Ethereum often suffers greater losses. Conversely, when the market rises, the profits from Ethereum can also outperform those of Bitcoin.

For example, during the strong growth period of the cryptocurrency market from early April to early June, Bitcoin increased by +46%. However, during the same period, Ethereum saw an extraordinary increase of +100%, soaring from a level of 1,400 USD to 2,800 USD, proving that the strong volatility of Ethereum can yield significant profits when the market moves in the right direction.

Bitcoin and Ethereum Rainbow Chart

Bitcoin has long been a leading indicator of the volatility of the entire crypto market, including Ethereum. Although Ethereum has always exhibited stronger fluctuations, it cannot be denied that the growth of Bitcoin often leads the overall trend of the cryptocurrency market. And currently, Bitcoin seems to still have a long way to go before reaching its peak, possibly by the end of this year or next year.

Based on the price targets of reputable analysts, Bitcoin is forecasted to continue rising sharply in the near future. Experts estimate that the price of Bitcoin could increase by 50% to 66% compared to the peak levels in July and Q3, before this cycle ends. This means that in the second half of this year, the price of Bitcoin could reach double the price in June, thereby creating a strong bullish wave.

BTC Rainbow Chart | Source: Bitbo.ioMajor institutions such as Standard Chartered, Bernstein, Galaxy Digital, and renowned expert Peter Brandt all expect that the price of Bitcoin will reach between 150,000 to 200,000 USD within the next six months. These predictions are confirmed by the long-term price trend chart of Bitcoin, indicating a very promising future for this cryptocurrency.

As Bitcoin continues to make a strong mark on the market, the long-term trend chart of Ethereum is also beginning to form a three-year trend. This recalls the two most recent major market cycles, when the price of Ethereum tended to outperform Bitcoin in the following strong monthly rallies.

If this scenario repeats, the price of Ether could surpass Bitcoin in the next bull run, leading to a breakthrough in the transfer of value between these two coins. Ethereum may be at the center of the cryptocurrency market in the second half of this year, especially as technical factors and Layer 2 application development begin to take effect.

If the predictions about Bitcoin are accurate and this is the final move before Bitcoin reaches its peak in this cycle, then the rise of Ethereum could be a signal to kick off a strong "altcoin season" in this cycle. Smaller cryptocurrencies like meme coins and Layer 2 application tokens may benefit from Ethereum's development and the positive impacts from its technological advancements.

ETH's rainbow chart | Source: Merlijn The Trader/ Outside the technical context of the market for ETH price in Q3, here are four more bullish signals supporting the price increase of this leading smart contract platform in July.

1. Who will win in the L2 Ethereum fee war?

Ethereum is undergoing a critical phase in its development, with continuous upgrades and improvements being implemented to enhance performance and reduce transaction costs. One of the biggest changes is the Dencun upgrade, which took place on March 13, 2024.

The Dencun upgrade significantly reduces fees for L2 applications, facilitating the deployment of new products with lower transaction costs on Ethereum. This has started to show noticeable changes. Over the past 15 months, developers have begun to deploy applications using currencies that support Ethereum but have much lower fees.

In fact, the revenue from fees of the Ethereum base chain has plummeted from 30 million USD per year to only 500,000 USD in the first quarter of this year. This is a clear sign that users are starting to look for alternatives with lower fees. While this benefits users in terms of cost savings, it poses a challenge for Ethereum investors who face the issue of moving their assets out of the network to capitalize on these savings, especially in staking contracts.

Although Ethereum remains the leading smart contract platform, this does not mean that the market is without change. While the price of Ethereum has seen slower growth compared to Bitcoin over the past year, competitors like Solana and XRP are still gaining attention.

In addition, the development of L2 coins post-Dencun, such as Mantle (MNT), POL (POL), Arbitrum (ARB), Optimism (OP), Movement (MOVE), and Starknet (STRK), not only helps improve transaction costs but also increases the competitiveness of Ethereum. Although most of the capital does not leave Ethereum, but rather shifts to other layers supported by the base chain, this migration still somewhat affects the value of Ethereum.

For this reason, Ethereum is currently facing a situation of being undervalued in the eyes of a large portion of investors and market participants who do not fully understand the impacts of the Dencun upgrade and the development of L2 layers.

Ethereum identity crisis?

With the rapid development of L2 applications and the emergence of many new solutions, some people in the cryptocurrency community have begun to refer to this difficult phase of Ethereum as an "identity crisis." Ethereum is an open platform where anyone can build applications, which makes its ecosystem incredibly diverse and complex. However, in such an environment, instability and increasing competition create challenges in maintaining Ethereum's brand positioning.

The question posed to Vitalik Buterin and early investors who recognized the value of Ethereum is whether the upgrades and new applications can implement a platform-wide standard. Can Ethereum find a solid path and sustainable development in the long term, in order to strengthen and affirm its global position in the cryptocurrency market?

Finding the answer to this question will be a significant turning point for both the Ethereum community and investors. Those who catch this development trend early will be able to take advantage of the great opportunities in the future of the Ethereum ecosystem.

2. SharpLink buys 30 million USD in Ether

One of the most exciting new developments in the Ethereum market is SharpLink Gaming, a company in the entertainment industry, has just announced the purchase of an additional 30 million USD worth of ETH. This move comes right before the Ether price chart formed a small cup and handle (cup and handle) pattern, a popular technical pattern that is believed to signal future growth. But why is this action important? To answer this question, we can look back at a notable example from the past – the story of Strategy.

In 2020, under the leadership of Michael Saylor, the founder and CEO of Strategy (MSTR), the company decided to shift its business strategy towards accumulating Bitcoin as a primary long-term asset. This was a bold and revolutionary move, as Bitcoin was still in the phase of gaining broader recognition. However, this strategy proved to be correct as the price of Bitcoin soared, bringing enormous profits to the company.

Specifically, from January 5, 2024 to November 22, 2024, the stock price of Strategy increased by 566%, from $63 to $420. During the same period, the S&P 500 Index only increased by 27%, from 4697 points to 5969 points. This shows that investing in Strategy's stocks yields superior returns compared to investing in traditional stock indices, such as the S&P 500 ETF.

If you spend 100 dollars to buy MSTR stock at the beginning of 2024, within just 11 months, this amount could increase to 666 dollars, meaning you would make an additional 566 dollars in profit. Meanwhile, 100 dollars invested in an S&P 500 ETF would only yield 27 dollars in the same period.

After the remarkable success of Strategy in accumulating Bitcoin, SharpLink Gaming now seems to want to apply a similar strategy but for Ethereum (ETH). By the end of May 2024, SharpLink's stock soared from 3.76 USD to nearly 80 USD in just 8 days. This is a sign that Wall Street is appreciating this company's move to accumulate ETH.

With this new strategy, SharpLink is entering the race of major companies to acquire ETH, which can be seen as a step to anticipate the rising trend of Ethereum in the future. Wall Street continues to show optimism towards cryptocurrencies and the DeFi market, while traditional investment funds are increasingly paying more attention to projects and companies accumulating cryptocurrencies.

The participation of companies like SharpLink and Strategy not only has a significant impact on the value of Bitcoin and Ethereum but also reflects a new investment trend that is gradually forming in the cryptocurrency market. As large companies begin to recognize the potential of Ethereum and other cryptocurrencies, the market will become even more dynamic and present more opportunities for long-term investors.

This simultaneously reinforces confidence in the future of Ethereum, as more and more large enterprises trust its growth potential and long-term viability, not only as an investment asset but also as a strategically valuable technology platform in various fields.

3. Ethereum whale lost 39 million dollars

On June 22, an Ethereum whale suffered a significant loss of up to 39 million dollars amid a decline in global cryptocurrency prices. Although this was a shock with a large loss, interestingly, the future outlook for Ethereum remains bright enough to make large whales unable to miss the opportunity to buy in when prices drop by 24%.

So, what has made these large investors continue to participate in the market, even when faced with temporary price declines?

For those investing in Ethereum, each token is not just a simple unit of currency, but a "vote" of value. These tokens participate in a vast trading system on global exchanges, where the value of Ether is determined by many factors, including supply and demand and global economic events.

This means that when a whale or a large investor "votes" by buying or withdrawing Ethereum from the exchange, they are affecting the supply and demand of this coin. When a large amount of ETH is withdrawn, the supply of ETH decreases, which can lead to a price increase when demand remains the same or increases.

When Ethereum investors decide to "stake" their ETH in staking contracts, they not only expect to earn profits from staking interest but also create solid support for the value of Ethereum. This is particularly important during periods of market volatility.

Betting on ETH acts as a driving factor for supply and demand as the supply decreases while demand continues to rise. This creates strong support for the value of the coin, especially as investors continue to believe in the long-term potential of Ethereum, despite short-term fluctuations.

Although Ethereum whales suffered a loss of 39 million dollars from the price drop on June 22, confidence in the long-term prospects of Ethereum remains undiminished. Major investors continue to buy during the downturn, as they understand that as Ethereum perfects its ecosystem and continues to grow, its value will increasingly rise.

Moreover, with continuous improvements such as Ethereum 2.0 and system upgrades, Ethereum is preparing for new breakthroughs, opening up strong growth opportunities in the future.

4. Bit Digital exchanged 34 million dollars worth of BTC for ETH

Bit Digital, a renowned blockchain company based in New York, does not want to fall behind in the race to accumulate cryptocurrency, especially as competitors like SharpLink are ramping up their investment strategies. On June 25, Bit Digital announced that they would transfer $34 million worth of BTC in exchange for ETH. This is a significant move in the company's strategy to enhance its market presence and develop staking strategies for Ethereum.

This shows that Bit Digital is not only simply accumulating Bitcoin but is also starting to predict and participate in the long-term growth trend of Ethereum. They will use the funds from Bitcoin to invest in Ether, a coin that has strong growth potential thanks to technological advancements and the expansion of the ecosystem.

This shift will help Bit Digital not only hold a large amount of ETH but also earn profits from staking, where they will receive rewards for holding Ethereum in staking contracts. Participating in the staking strategy allows the company to have additional passive income while simultaneously reducing the risks from market price volatility.

Bit Digital not only simply converts BTC to ETH, but they also plan to identify which Ethereum coins have the largest scale and the highest transaction fees. This allows them to optimize profits from their staking strategies while finding the ETH coins that have the potential to yield the highest returns during specific periods.

With the development of solutions like Ethereum 2.0 and Layer 2 applications, such investment strategies can yield remarkable results as Ethereum continues to move forward and expand its ecosystem.

Conclusion

Although June has been a challenging month for the cryptocurrency market, positive signals from Ethereum are opening up bright prospects for July and the second half of 2025. Along with the strong recovery of Bitcoin and the increasing participation of major institutions, Ethereum continues to maintain its role as the leading smart contract platform, with a promising future ahead. Factors such as the upgrade of L2 transaction fees, the involvement of large investment funds, and new strategies will continue to drive the strong development of Ethereum in the near future.

Emma