Ethereum (ETH) has recently been nearing new all-time highs, with some analysts predicting the price could surpass $5,000.
Javier Rodriguez-Alarcón, chief investment officer at digital asset investment firm XBTO, said the rise will depend on continued institutional demand, progress on the upcoming “Fusaka” upgrade, and supportive macroeconomic conditions.
“Ethereum’s path to $5,000 will depend on a combination of continued institutional demand, increased scalability through upgrades, and favorable macro conditions,” Rodríguez Alarcón said in a statement. “Spot Ethereum ETF saw over $1.3 billion in inflows in the last week alone, demonstrating renewed strong belief from institutional investors.”
According to analysts, on-chain data and accumulation patterns of large investors known as “whales” suggest that Ethereum could enter an expansionary phase similar to Bitcoin’s rally in 2020.
Rodriguez Alarcón, who previously worked at giants like BlackRock and JPMorgan, noted that risk assets are also benefiting from expectations regarding the Fed’s interest rate policy. “Tremendous Fed posture on the macro front, pressure on fiat currencies, and positive underlying momentum could result in additional capital flowing into risk assets,” he said. “In this environment, Ethereum could disproportionately benefit due to its fundamental role in defi, stablecoins, and tokenization infrastructure.”
Rodriguez-Alarcón noted that the Fusaka upgrade expected in November will bring important improvements such as parallel execution within the Ethereum Virtual Machine (EVM). This step will increase the scalability of the network and alleviate bottlenecks in Ethereum’s next growth cycle, he said.
*This is not investment advice.
