As it gets closer to the much-awaited $4,000 threshold, Ethereum (ETH) is steadily gathering momentum and might reshape its short-term path and long-run market potential.
Driven by rising institutional interest, good economic indicators, and a rapid rise in market activity, analysts as well as corporate executives are becoming increasingly upbeat about the direction of the digital asset.
As of Thursday, Ethereum was trading somewhat below the $4,000 level. Emphasizing Ethereum’s positive prospects, Galaxy Digital CEO Michael Novogratz stated that the asset is about to go into a “price discovery phase” once it passes the $4K limit. With about $194 million, Galaxy Digital owns over 52,000 ETH, making Ethereum the company’s second biggest cryptocurrency holding after Bitcoin.
According to Arkham Intelligence, Galaxy’s cryptocurrency holdings come just under $1.9 billion. With ETH up over 50% over the last month and soaring more than 160% since April, this portfolio development has mirrored the recent surges in Ethereum. Novogratz said this rise was driven by a supportive macroeconomic climate, notably inflationary worries and worldwide economic reflation initiatives led by nations like China.
Along with market momentum, Ethereum’s growing appeal is based on its supply restrictions and growing applications. Bitwise’s Chief Investment Officer, Matt Hougan, emphasizes that growing institutional demand, especially from Ethereum-focused Treasury companies, is helping to shape events. Mostly focused on Ethereum, fueling further investment and expansion, these companies profit when their stock prices exceed the value of their bitcoin assets.
According to estimates, investment funds and treasuries may swallow over $20 billion in ETH by 2026. With just about 800,000 ETH anticipated to be mined inside that time frame, the supply-demand imbalance could drive prices even higher, though.
Ethereum is set for a major long-term surge, maybe reaching $10,000, according to crypto experts such David_kml. At the same time, Ethereum’s open interest across exchanges has surpassed $27 billion, showing great market conviction and high speculative interest devoid of too much leverage.
Everything indicates Ethereum is entering a new valuation and adoption period.
