Key Points
- Ethereum’s price shows bullish signals, aiming for $5,000 despite fluctuating demand from institutional investors.
- Despite competition, Ethereum remains a leader in the web3 space, with increasing interest from institutional investors.
Despite being in correction mode for the past two weeks, the price of Ethereum (ETH) has established a robust support level above $3,050. This indicates a potential bullish trend in the near future.
ETH, a large-cap altcoin, has a fully diluted valuation of about $378 billion and a daily average traded volume of around $35 billion. Today, it has gained over 2% and is trading around $3,140.
Market Analysis and Predictions
As the price of Bitcoin (BTC) hit a new all-time high of over $97.8K, Ethereum has been gathering bullish sentiment. The leading altcoin is forming a potential bullish flag, suggesting a positive market trend.
From a technical standpoint, Ether’s price against USD is completing the first correction of the Elliott wave theory, following a bullish breakout earlier this month. A successful pump above the resistance level of around $3,444 could propel Ether’s price towards the next major liquidity range between $3,900 and $4,000.
Market trader Peter Brandt suggests that Ether’s price against Bitcoin is currently retesting a crucial support trend line, which could lead to a market reversal. He argues that Ether’s price is well poised to outperform BTC price in the near term.
Ethereum’s Market Position
Despite the growth of the Solana (SOL) ecosystem, Ethereum remains the undisputed leader in the web3 space. As of now, the Ethereum network has a total value locked (TVL) of about $60 billion and a stablecoins market cap of nearly $98 billion.
More institutional investors are seeking to tokenize real-world assets (RWA) on the Ethereum blockchain, making it a prudent choice in the coming months. The RWA space is expected to unlock trillions of dollars in global markets, with Ethereum already leading the way.
The demand for Ethereum among institutional investors has been fluctuating since the approval of US spot Ether ETFs. Cumulatively, the US spot Ether ETFs have registered a net cash inflow of $27.82 million, with the total assets under management (AUM) around $8.98 billion.
BlackRock’s ETHA has continued to accumulate more Ether and currently holds more than $1.7 billion worth of ETH. Grayscale’s ETHE registered a net cash outflow of about $16.29 million on Wednesday and currently has $4.66 billion in AUM.
With the improving Ether’s spot market, Ethereum price is well positioned to rally parabolically in the coming months, potentially surpassing $10k in this bull cycle.
