Ethereum, the long-standing powerhouse of the smart contract ecosystem, may finally be stepping into the spotlight. While Bitcoin has dominated headlines this year—surging to new all-time highs—Ethereum has quietly been laying the groundwork for a potential breakout. Despite trading nearly 50% below its 2021 peak, ETH has recently gained momentum, climbing about 50% over the past month. With growing investor confidence, key technical upgrades, and increasing regulatory clarity on the horizon, now could be a pivotal moment to reconsider Ethereum’s place in your portfolio.
But is it wise to buy Ethereum while it's still under $2,600? Let’s explore the fundamentals, ecosystem strength, and upcoming catalysts that could drive its next leg higher.
Why Ethereum Could Be Poised for a Rally
Ethereum isn’t just another cryptocurrency—it’s the backbone of decentralized innovation. As the second-largest crypto by market capitalization, it powers thousands of decentralized applications (dApps), hosts billions in digital assets, and remains the go-to platform for developers building on blockchain technology.
One major advantage Ethereum holds over other networks? Regulatory recognition. The U.S. Securities and Exchange Commission (SEC) has only approved spot Ethereum ETFs and Bitcoin ETFs so far—giving ETH a rare edge in legitimacy and institutional accessibility.
Despite past criticisms around slow transaction speeds and high gas fees, Ethereum continues to evolve. Its network activity remains unmatched, with more developer contributions than any other blockchain. And crucially, its price momentum is shifting.
👉 Discover how Ethereum’s latest upgrade could boost investor returns
Here are three key tailwinds fueling Ethereum’s potential rally:
1. The Pectra Upgrade Strengthens Staking and Usability
The recent Pectra upgrade marks another milestone in Ethereum’s journey toward scalability and user-friendliness. By improving staking mechanisms—such as enabling withdrawals from multiple validators at once—the update enhances both security and accessibility for retail and institutional participants alike.
This isn’t a one-off fix. Ethereum’s development roadmap is methodical and consistently executed. From the historic shift to proof-of-stake (The Merge) to ongoing layer-2 integrations, each upgrade reinforces network resilience and long-term viability.
2. The GENIUS Act Could Boost Regulatory Clarity
Regulatory uncertainty has long weighed on crypto markets. But momentum is building for the bipartisan GENIUS Act, which aims to establish a clear framework for stablecoins—many of which operate on the Ethereum blockchain.
With major decentralized finance (DeFi) protocols like Aave, Uniswap, and MakerDAO relying heavily on Ethereum-based stablecoins, clearer rules could unlock institutional adoption and reduce compliance risks. When regulation shifts from ambiguity to structure, leading platforms like Ethereum stand to benefit most.
3. Investors Are Holding, Not Selling
On-chain data reveals a powerful signal: Ethereum supply on centralized exchanges is at an all-time low. According to blockchain analytics firm Santiment, only 4.9% of the total ETH supply resides on exchanges—the lowest level ever recorded.
This indicates strong holder conviction. When investors move their assets off exchanges and into private wallets or staking contracts, it suggests they’re not planning to sell anytime soon. Reduced circulating supply can create upward pressure on price, especially if demand increases.
Critics Are Missing Ethereum’s Ecosystem Strength
Some analysts remain skeptical. Standard Chartered recently downgraded its Ethereum price target to $4,000—a figure still nearly 60% above current levels—but cited persistent scalability challenges and questioned its long-term fundamentals.
While these concerns aren't baseless, they overlook a critical truth: Ethereum is still being used.
DefiLlama data shows that over $60 billion in total value locked (TVL) resides on Ethereum—more than half of all value across DeFi platforms. No so-called "Ethereum killer" has come close to dethroning it.
Yes, newer blockchains like Solana, Avalanche, and Tron have captured market share with faster speeds and lower fees. But Ethereum’s combination of security, decentralization, and developer familiarity gives it staying power.
Developers know how to build on Ethereum. Auditors understand its codebase. Users trust its track record. These intangible advantages don’t show up on performance charts but are vital for sustained dominance.
👉 See how Ethereum compares to next-gen blockchains in real-world usage
Ethereum Still Has Long-Term Potential
Crypto investing is inherently speculative, and patience is often rewarded only after volatility tests resolve. While Bitcoin has stolen the spotlight in 2025 with its halving-driven rally, Ethereum has continued building behind the scenes.
Its ecosystem remains the most mature and diverse in the space. From NFT marketplaces to decentralized identity solutions, from tokenized real-world assets to AI-integrated dApps—most serious innovations begin on Ethereum or eventually migrate there.
As the broader crypto market matures, projects with proven utility, strong communities, and continuous upgrades will likely regain investor favor. Ethereum checks all these boxes.
Moreover, upcoming enhancements like further layer-2 scaling solutions (e.g., rollups), account abstraction, and potential future upgrades could significantly improve user experience and reduce costs—addressing two of the most common criticisms head-on.
Frequently Asked Questions (FAQ)
Q: Is Ethereum a good investment under $2,600?
A: At current levels, Ethereum appears undervalued relative to its ecosystem size and growth potential. With strong on-chain metrics and upcoming catalysts, many analysts view sub-$2,600 as a strategic entry point.
Q: How does Ethereum differ from Bitcoin?
A: While Bitcoin functions primarily as digital gold and a store of value, Ethereum is a programmable blockchain that supports smart contracts, DeFi, NFTs, and more complex applications—making it foundational to Web3 innovation.
Q: Could another blockchain replace Ethereum?
A: Despite competition from faster chains, no alternative matches Ethereum’s combination of security, decentralization, developer activity, and institutional support. Migration risks exist but remain limited due to network effects.
Q: What factors could drive Ethereum’s price higher?
A: Key drivers include ETF inflows, regulatory clarity (like the GENIUS Act), continued network upgrades, rising DeFi/NFT activity, and increased staking participation.
Q: Is now a good time to buy Ethereum?
A: Given low exchange reserves, recent price recovery, and strong ecosystem fundamentals, many investors see the current price range as favorable for long-term accumulation.
Final Thoughts: Ethereum Deserves Another Look
Ethereum may not be making record-breaking moves like Bitcoin right now—but that doesn’t mean it’s fading into irrelevance. On the contrary, it's evolving with purpose.
With its robust ecosystem, ongoing technical improvements, regulatory tailwinds, and strong holder sentiment, Ethereum remains one of the most compelling assets in crypto. Buying under $2,600 could prove prudent if macro trends align and investor focus shifts back to fundamentals.
Whether you're a long-term believer or a tactical investor watching for breakout signals, Ethereum deserves space in your research queue—and possibly your portfolio.
👉 Start exploring Ethereum’s potential today—before the next surge begins