Sky-high gas fees and network congestion have been driving users away from ethereum, JPMorgan said.
The Fed could pull back its support even faster than expected, spelling trouble for risky assets like bitcoin.
Crypto markets cratered Saturday as a sell-off was worsened by huge amounts of leverage in the system.
Assets hovered at record highs even after the Fed said that "asset prices may be vulnerable to significant declines."
Goldman Sachs said ethereum has tracked inflation expectations closely, meaning it could be set to surge.
Research house Fundstrat reckons the signs look good for ether, the cryptocurrency of the ethereum network.
Analysts said cryptocurrency investors had "bought the rumor, sold the fact" as El Salvador made bitcoin legal tender.
Investors have so far responded well to the ethereum network changes, with ether rising sharply since the fee-burn mechanism came into force.
Analysts at Coinbase said sentiment had been boosted by changes to the ethereum network, which will start to destroy coins.
Ethereum co-creator Vitalik Buterin holds 333,521 ETH worth some $1,125,299,854 as of Wednesday's coin price.
Ether's year-to-date gain stood at 357% on Tuesday, compared to bitcoin's 93% rise.
Ether's 370% year-to-date rally makes it worth more than Walmart based on Monday's closing prices.
"Usage of the Ethereum network is increasing and, by some measures, outpacing that of Bitcoin," Ark Invest said.
The European Investment Bank plans to price $121 million of two-year notes in an inaugural digital bonds sale on the Ethereum blockchain, reports say.
Demand for cryptocurrency ETFs are strong, as it allows investors to gain direct exposure to the asset class within their portfolios, and lowers trading costs.
The expiration of more than $5 billion of bitcoin options on Friday is adding to volatility in the market, analysts suggested.
The upgrade to the Ethereum network, known as EIP 1559, would limit the supply of ether by overhauling the way transactions work.