Ethereum ‘Demand Shock’ Will Drive $20B in ETH Purchases by Mid-2026: Bitwise CIO

Ethereum’s native token, Ether (ETH), is facing a textbook “demand shock,” and that may just be the beginning.

ETPs and Treasurys Will Acquire $20B in Ethereum

The recent 50%-plus surge in ETH price has been fueled by unprecedented institutional appetite, primarily from exchange-traded products (ETPs) and a wave of new Ethereum treasury strategies among corporations. S

Since May 15, ETH ETPs have attracted more than $5 billion in inflows, while treasury buyers like Bitmine and SharpLink have disclosed ETH holdings for the first time.

In total, these buyers have accumulated an estimated 2.83 million ETH—over $10 billion at current prices. That’s roughly 32 times more than the net new ETH issued over the same period, according to Bitwise’s chief investment officer Matt Hougen’s estimates.

“Sometimes, it really is that simple,” he said in a July 22 note, adding:

“Demand is vastly outpacing supply.”

The trend represents a stark turnaround from earlier in the year.

Prior to May, Ethereum’s ETPs had absorbed just $2.5 billion in total, nearly matching the 543,00 ETH issued by the network during that time. ETH traded flat-to-lower in response. But since mid-May, demand has decoupled from supply and the price has followed.

Looking ahead, Hougan believes the trend is only beginning. He forecasts ETPs and treasury buyers could acquire up to $20 billion worth of ETH by mid-2026, or 5.33 million ETH at current prices.

In contrast, Ethereum is expected to issue just 800,000 ETH over that time.

“With ETP investors still underweight ETH relative to BTC, and tokenization and stablecoin activity surging, this demand wave could last for quarters,” Hougan added.

Ascending Triangle Targets $4,100 ETH

From a technical standpoint, Ethereum’s price action points to continued bullish momentum. The ETH/USD 4-hour chart reveals an ascending triangle pattern — a classic continuation structure often seen during strong uptrends.

The setup suggests a breakout above the triangle’s resistance could push ETH toward the $4,100–$4,200 range, derived from the height of the triangle projected from the breakout point.

Support from the 50-EMA and steady trading volumes further bolsters the bullish case, while RSI remains neutral, offering room for additional upside.

A confirmed breakout could mark the start of Ethereum’s next leg higher — aligning technicals with the ongoing institutional demand surge.