A longer-term ETH price rally is dependent on SEC approval of in-kind ETF creation and staking to attract more investors.

After surging 43.6% between May 7 and May 14, Ether (ETH) is now priced at $2,600, but it still falls short of the 2021 peak of $4,868.

The price of Ether (ETH) surged 43.6% between May 7 and May 14, reaching $2,600. However, some analysts believe that this rally is just the beginning of a much larger and aggressive uptrend, raising the likelihood of a near-term rally to $5,000.

As the dust settles on an eventful week in crypto markets, the potential for a new all-time high for ETH in 2025 remains a topic of debate, especially with the emergence of new competitive threats.

According to X user Adriano Feria, ETH is "the best candidate for institutional diversification" as professional fund managers prefer "similar levels of regulatory clarity and accessibility" through multiple spot exchange-traded funds (ETFs). However, recent data on ETF flows might not be especially encouraging.

Between May 12 and May 13, US-listed Ether ETFs saw net outflows of $4 million. Moreover, the size of the Ether ETF market is 92% smaller than Bitcoin's $121.5 billion, highlighting a clear lack of institutional appetite for ETH-based products.

This might lead some traders to question how Ether can truly gain traction among professional investors, especially in the face of intensifying competition. While cryptocurrencies like Cardano (ADA), Stellar (SOL), and XRP have outperformed ETH in 2025, their chances of being included in US state-level digital asset reserves seem to have diminished.

This follows US President Trump's decision on March 2 to distance himself from lobbyists supporting XRP, SOL, and ADA. The "Digital Asset Stockpile" executive order issued on March 6 was notably more cautious, drawing a clear line between Bitcoin (BTC) and other altcoins.

The best-case scenario for Ether may involve a lack of direct ETF competition, which would depend on the US Securities and Exchange Commission (SEC) rejecting several pending applications.

Analysts suggest that Ether ETFs could also benefit from in-kind creation and staking approvals — developments considered highly likely before year-end, according to Bloomberg Intelligence analyst James Seyffart.

Pectra upgrade improved scalability, setting the stage for AI adoption

Previously touted as the answer to Ether's monetary policy, the built-in burn mechanism introduced in 2021 was designed to reduce supply growth based on network demand. However, the shift in focus towards scalability through rollups has largely offset its deflationary impact.

Therefore, a substantial increase in onchain activity is needed for Ether to become deflationary once more. The recent Pectra upgrade has improved data transmission efficiency, setting the stage for enhanced scalability.

Layer-2 network activity increased by 23% compared to the previous month, with the Base network leading the pack at 244.2 million transactions in 30 days, as per data from L2beat. If this momentum persists, it could generate sustained demand for ETH and help further differentiate Ethereum from rival platforms.

As the dust settles on an eventful week in crypto markets, the potential for a new all-time high for ETH in 2025 remains a topic of debate, especially with the emergence of new competitive threats.

According to X user Adriano Feria, ETH is "the best candidate for institutional diversification" as professional fund managers prefer "similar levels of regulatory clarity and accessibility" through multiple spot exchange-traded funds (ETFs). However, recent data on ETF flows might not be especially encouraging.

Between May 12 and May 13, US-listed Ether ETFs saw net outflows of $4 million. Moreover, the size of the Ether ETF market is 92% smaller than Bitcoin's $121.5 billion, highlighting a clear lack of institutional appetite for ETH-based products.

This might lead some traders to question how Ether can truly gain traction among professional investors, especially in the face of intensifying competition. While cryptocurrencies like Cardano (ADA), Stellar (SOL), and XRP have outperformed ETH in 2025, their chances of being included in US state-level digital asset reserves seem to have diminished.

This follows US President Trump's decision on March 2 to distance himself from lobbyists supporting XRP, SOL, and ADA. The "Digital Asset Stockpile" executive order issued on March 6 was notably more cautious, drawing a clear line between Bitcoin (BTC) and other altcoins.

The best-case scenario for Ether may involve a lack of direct ETF competition, which would depend on the US Securities and Exchange Commission (SEC) rejecting several pending applications.

Analysts suggest that Ether ETFs could also benefit from in-kind creation and staking approvals — developments considered highly likely before year-end, according to Bloomberg Intelligence analyst James Seyffart.

Pectra upgrade improved scalability, setting the stage for AI adoption

Previously touted as the answer to Ether's monetary policy, the built-in burn mechanism introduced in