Cryptocurrency Ethereum exceeds $4,000 mark after an 8-month hiatus, speculation mounts whether it will reach $6,000.
Ethereum, the second-largest cryptocurrency by market cap, has broken a new record with 1.74 million daily transactions, surpassing its May 2021 high. This surge is primarily driven by massive institutional demand, according to industry analysts.
Treasury companies like BitMine, planning to raise $24 billion, are among the significant investors buying Ethereum. This inflow of capital, considering all Ethereum ETFs hold about $25 billion in assets, is a testament to the growing institutional interest in Ethereum.
Strong inflows into spot ETH ETFs, including over $1 billion in a single day and cumulative inflows exceeding $10 billion, led by BlackRock’s ETHA ETF, are further fuelling the rally.
Corporate entities such as BitMine Immersion and SharpLink Gaming hold billions in Ethereum, indicating a growing trend of corporate adoption.
Whales have also been active, purchasing over 1.8 million ETH in the past month.
The Ethereum community is eagerly awaiting SEC approval of staked Ethereum ETFs, which could be a significant catalyst for further growth.
Target Prices
The next potential target price for Ethereum could be $6,400, according to some analysts. By the end of 2025, some forecasts are highly bullish, with major financial firms like Standard Chartered expecting Ethereum to reach $7,500. More optimistic projections, including Fundstrat's Tom Lee, envision Ethereum potentially soaring as high as $15,000.
Current Trends
Ethereum is up over 8% in the past week and has gained over 50% in the past month. It has reached $4,000 for the first time since December 2021. On August 7th, Ethereum ETFs saw net inflows of over $222 million. The ETH/BTC ratio has increased by 3% in the past hour due to Ethereum’s recent gains.
Despite the recent price increase, Ethereum remains about 18% below its 2021 peak of $4,878. As of August 7, cumulative net inflows into Ethereum ETFs have reached $9.35 billion.
Analyst Michaël van de Poppe expects 200-500% gains for altcoins in the next 2-4 months. Investor Ted Pillows mentioned that Eric Trump predicted the bottom for Ethereum, urging people to "Buy the dip."
In summary, the surge in Ethereum's price is attributed to whale buying, corporate adoption, and strong institutional interest. The community is awaiting SEC approval of staked Ethereum ETFs, which could be a significant catalyst. Analysts anticipate target prices up to $15,000 within the year, with short-term targets around $4,800 to $6,000.
Investment firms like BitMine are among the institutional investors flooding the market with capital to buy Ethereum, contributing to its growth. The wealth held by corporations such as BitMine Immersion and SharpLink Gaming, along with purchases from whales, indicates a significant trend of investing in Ethereum. As a result, Ethereum's potential target prices are projected to reach as high as $15,000, according to analyst Tom Lee, suggesting a bullish outlook for this cryptocurrency.
