Ethereum One analyst said the stock is close to recent highs and could continue to break new records above $5,000 in the future if demand from financial institutions and progress toward upgrading Fusaka continues to encourage.
“Whether Ethereum approaches $5,000 will depend on a confluence of sustained institutional demand, scalability through upgrades, and a supportive macro environment,” said Javier Rodríguez Alarcón, chief investment officer at digital asset investment firm XBTO. decryption. “Inflows into Spot ETH ETFs have been robust, exceeding $1.3 billion in the past week alone, demonstrating renewed confidence among institutional investors.”
“On-chain indicators and whale accumulation patterns indicate that ETH may be entering an expansion phase reminiscent of the 2020 Bitcoin breakout,” he added.
The Ethereum ETF has already gotten off to a strong start this week, raising $176.6 million during Monday’s trading hours, according to data from Pharcyde Investors. According to a report by CoinShares, Ethereum funds around the world raised $1.48 billion last week, marking a significant recovery from the previous week’s deficit.
Ethereum came incredibly close to breaking $5,000 in late August, hitting an all-time high of $4,946.05. Ethereum is currently trading at $4,560 after rising more than 10% since last week. This puts the stock 7.6% away from its all-time high. According to CoinGecko, ETH rose to $4,753 early Thursday.
Myriad users are increasingly confident that Ethereum’s upward trend will continue. As of Tuesday morning, 80% of users believe ETH will reach $5,000 sooner than it will fall to $3,500. This is a notable increase in optimism compared to last week, when users were evenly divided on what price Ethereum would go to next.
Rodríguez Alarcón, who previously worked at BlackRock and JPMorgan, added that risk assets in general benefit greatly from monetary policy signals coming from the US Federal Reserve. The Federal Reserve (Fed) will next meet at the end of the month to decide on interest rates.
“On the macro front, the Fed’s dovish leanings, continued pressure on fiat currencies, and positive momentum in gold could spark further inflows into risk assets,” he said. “In that environment, Ethereum stands to benefit disproportionately given its fundamental role across DeFi, stablecoins, and tokenization infrastructure.”
This macroeconomic environment has led to investors rushing back to emerging markets, leading to the biggest stock rally in 15 years.
“While the weak dollar was the spark, this rally is also about the maturation of emerging markets themselves,” DeVere CEO Nigel Green wrote in a shared note. decryption. He noted that Brazil, Mexico and South Africa are all receiving renewed interest from foreign investors.
Meanwhile, Ethereum developers are working towards an upgrade to Fusaka that is said to be the network’s biggest scaling bet to date. According to the project roadmap, it is expected to be completed by the end of the year.
“The next Fusaka upgrade, scheduled for November, introduces important improvements such as parallel execution on Ethereum virtual machines, and is a major step toward alleviating scaling bottlenecks in the next growth cycle,” said Rodríguez-Alarcon.
