1. Ethereum’s real economic growth is outpacing its price gains, widening a long-term value gap.
2. Market watchers see ETH in a slow but important setup phase before a stronger cycle is expected in Q1 2026.
3. Current price action shows ETH sitting on a key demand zone that often triggers trend reversals.

New on-chain data shared by Milk Road shows how Ethereum’s real demand has expanded far quicker than its valuation over the last four years. The numbers highlight a major change in how users handle money on the network. Since 2020, the supply of stablecoins sitting on Ethereum has climbed by 65.5x.

This kind of rise signals active usage, because stablecoins usually move where real economic activity is building. During the same period, Ethereum’s fully diluted market cap grew by 21.6x. The gap between these two lines shows how the chain’s economic foundation has scaled much faster than its price.

Market watchers often look at such spreads as early signs of longer-term value alignment. If Ethereum’s price eventually adjusts to match the pace of its activity growth, the difference between the two curves may narrow in the coming cycles.

Analysts Point to a Slow Phase Before a Larger Upside Window

Analyst EliZ shared that Ethereum’s chart currently sits among the weaker setups in the market, yet he believes this slow period is preparing the ground for a stronger cycle.

He noted that the ETH/BTC pair is consolidating on key support and still needs one final downward move to clear remaining liquidity. This type of structure usually forms during lengthy and uneventful phases that often appear before stronger market rotations.

EliZ also pointed to the broader macro backdrop. Quantitative tightening is expected to end in December, and even a mild shift toward quantitative easing in the months after could push liquidity back toward risk assets. He highlighted the near-empty Reverse Repo Facility, which signals that the Federal Reserve is no longer absorbing liquidity.

When this happens, more capital tends to flow into markets, and altcoins such as ETH usually react strongly. He maintained that Ethereum’s major moment is not now but is more likely to form heading into Q1 2026.

Ethereum Trades in a Key Demand Zone as Reversal Signals Build

Ethereum is trading at $3,065.86, holding above an important zone that has supported buyers in the past. Analyst Marzell pointed out that ETH recently tapped the $2,930–$3,030 demand area, which also aligns with bullish RSI divergence and the completion of a final wave pattern. He listed $3,180 as the first trigger level, followed by $3,350 for a breakout, and potential targets at $3,600, $3,820, and $4,050.

Also Read: Ethereum (ETH) Price Outlook: Fear, Bearish Winds, Hope of 10% Rise