[Analysis] "Ethereum: possibility of surpassing $5,000 exists…Institutional demand and ETF inflows are drivers of the rally"

Suehyeon Lee

Summary

"Ethereum (ETH)'s on-chain indicators still suggest a possibility of surpassing $5,000."
"A net inflow of $213 million into Ethereum spot ETFs and institutional demand, along with a decrease in exchange ETH holdings, were cited as bullish signals."
"It analyzed that companies' expanded inclusion of Ethereum as a reserve asset strengthens the mid- to long-term possibility of surpassing $5,000."

Ethereum (ETH) has recently stalled, but on-chain data still suggests a possibility of surpassing $5,000.

On the 20th (local time), Cointelegraph reported, "Ethereum briefly topped $4,700 this week but was immediately pushed down to $4,475 and failed to continue its uptrend. However, on-chain indicators still show that the possibility of surpassing $5,000 remains alive."

In fact, on-chain indicators still point to bullishness. On the 18th, spot Ethereum exchange-traded funds (ETFs) saw a net inflow of $213 million, sustaining institutional demand, and exchange ETH holdings fell to a five-year low. According to Glassnode, 2.69 million ETH have been withdrawn from exchanges in the past two months alone, showing a clear cumulative accumulation trend.

The outlet analyzed, "Alongside bullish on-chain indicators, as companies expand incorporating Ethereum into their financial strategies as a reserve asset, the possibility of surpassing $5,000 in the mid to long term is being reinforced."

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