According to crypto analyst Xanrox, Ethereum is on the cusp of achieving a significant upward trend, potentially reaching a new all-time high of $5,500. He highlighted several elements that could contribute to this upward movement.
Ethereum Targets $5,500 Surge in the Near Term
In a post on TradingView, Xanrox forecasted that Ethereum’s price might climb to $5,500 shortly, driven by purchases from banks and governments. He also mentioned that ETH’s inclusion in the U.S. crypto reserve is a favorable sign for the altcoin. Additionally, Ethereum ETFs could further boost ETH demand.
Institutional investors view ETH as the future of the crypto sector, which bodes well for its price. These investors have shown increasing interest in ETH, fueled by hopes that these funds might soon offer a staking option after receiving the SEC’s approval. Notably, last week, these funds surpassed Bitcoin ETFs in daily inflows for the first time.
Xanrox remains optimistic about Ethereum’s price from a technical standpoint, noting that the altcoin is within an ascending channel, showing strong bullish momentum. He suggested it’s still a good time to purchase ETH, given its recent rally to a six-month peak.
He believes Ethereum’s price is currently positioned for growth. Thus, buying now allows for potential profits when ETH hits $5,500. Xanrox anticipates that this level will serve as a consolidation point before further gains. Interestingly, his chart suggested Ethereum might eventually reach as high as $113,000.
Impending Demand Surge for ETH
In a post on X, Bitwise Chief Investment Officer Matt Hougan predicted an impending demand surge for ETH, supporting his expectation of continued price increases. He pointed out that the altcoin has risen over 50% in the past month and more than 150% since April lows, driven by strong demand from ETFs and corporate treasuries.
Matt Hougan foresees this demand continuing to rise. He observed that ETF investors are currently underexposed to ETH relative to BTC. Although ETH’s market cap is about 19% of BTC’s, Ethereum funds hold less than 12% of the assets compared to Bitcoin ETFs. This disparity suggests that investors might allocate more to ETH, boosting its price.
The Bitwise CIO projected that Ethereum ETFs and treasury entities could acquire up to $20 billion worth of ETH within the next year, equivalent to 5.33 million ETH at current prices. Meanwhile, the Ethereum network is expected to generate around 800,000 ETH over the same timeframe, resulting in demand outpacing supply by a factor of seven.
As of the latest data from CoinMarketCap, Ethereum’s price is approximately $3,700, showing an increase over the past 24 hours.
