Ethereum's price has surged from $2,780 to $3,500 in July 2025 amid a significant drop in Bitcoin's market dominance, with analysts predicting a potential rally toward $4,800. This shift reflects accelerating capital rotation into ETH, driven by institutional interest in staking products and robust on-chain metrics including rising Total Value Locked (TVL) and increased staking activity.
Market watchers like Trader Koala highlight a major mispricing between BTC and ETH, asserting: "That discrepancy won’t last much longer. I continue to bullieve." Former BitMEX CEO Arthur Hayes and other analysts echo this sentiment, citing Ethereum's deflationary mechanics and scalability upgrades as catalysts. Vitalik Buterin emphasized "impacts of improved rollups and lower-layer upgrades" enhancing user experience.
Historical data indicates declining Bitcoin dominance often precedes altcoin seasons, with ETH's rally potentially fueling broader gains in platforms like Solana and Polygon. Institutional allocations toward ETH are rising, while on-chain activity and staking rates signal strengthening network fundamentals.