Will Ethereum Break $2,000? Conflicting Signals Between Network Growth and Price

▲ Ethereum (ETH) ©

Ethereum (ETH) holds 4.8% of its supply by one entity and dominates 43.2% of the tokenized US Treasury market, yet its price remains at $1,868, 62.3% below its all-time high. Amid a stark divergence between network growth and price trends, analysis suggests that a future rebound depends on its value relative to Bitcoin (BTC) and breaking the $2,000 mark.

According to investment specialized media TradingNews on August 5 (local time), Ethereum traded at $1,868.36, between its 50-day Exponential Moving Average (EMA) of $1,848.92 and its 100-day EMA of $1,925.95. This is 62.3% lower than its all-time high of $4,953.73 recorded in August 2025, and it has fallen by 2.01% over the past seven days. The 'dead cross,' where the 50-day Simple Moving Average falls below the 200-day line, has persisted for several months, indicating that the medium-term downtrend structure has not yet been resolved.

A key indicator is the Ethereum-Bitcoin ratio (ETH/BTC). Currently at 0.0291, this ratio is 3.1% below the cup and handle breakout level of 0.030. A daily close above 0.030 would confirm Ethereum's relative strength and a recovery in the altcoin market, but if the lower bound of 0.0285 breaks, Bitcoin's dominance is likely to continue. In dollar terms, Ethereum needs to hold $1,848.92, then successively overcome $1,925.95 and $2,000. Conversely, if $1,785 collapses, $1,658 and $1,555.13 are suggested as the next support levels.

Institutional demand remains weak. On August 4, $11 million was net-outflowed from Ethereum spot ETFs, and the total assets under management are approximately $13.71 billion, significantly less than the $47.08 billion of a single Bitcoin ETF, IBIT. However, staking-supported ETFs launched in 2026 have provided Ethereum with a differentiating factor as an income-generating asset. The fact that funds flowed only into ETHB, which supports staking, while major spot products saw outflows on July 31, also demonstrates this preference.

Network metrics are the opposite of price. One listed company holds 5.7978 million ETH, 4.8% of the circulating supply, and is estimated to generate approximately $250 million in annual revenue by staking 87% of it. Ethereum also accounts for 43.2% of the $15.2 billion tokenized US Treasury market. However, the growth of Layer 2 solutions has reduced mainnet fees and token burns, highlighting the issue that increased network utilization is not translating into price increases. With the Glamsterdam upgrade, originally scheduled for the first half of the year, also delayed, the media presented a base scenario for August of a trading range between $1,750 and $1,980 with 10-15% volatility.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*