- Ethereum nears $5,000, just a few candles away from retesting its 2021 all-time high.
- Institutional inflows exceed $11B into Ethereum ETFs, reducing supply and fueling upward momentum.
- Fed rate cuts expected in 2025 may boost risk appetite, supporting Ethereum’s push toward price discovery.
Ethereum is edging closer to its 2021 all-time high, positioning itself only a few candles away from potential price discovery. Market analysts note that the key test will be sustaining levels above $5,000 for several days, which could spark broader risk appetite for Ethereum and altcoins.
Ethereum Nears 2021 Highs with Strong Momentum
Ethereum’s weekly chart showed a rise to $4,768 before retracing slightly to $4,723, keeping it within reach of its $4,864 peak. The 2021 high remains an area of strong resistance, but recent moves reflect buyer strength across multiple timeframes. Support levels have been established near $2,851 and $2,168, giving the market a firm base.
According to Daan Crypto Trades, “ETH [is] making its way back to the all-time high. Just a few candles away from proper price discovery.” He added that holding above $5,000 could encourage wider risk-on appetite across Ethereum and other altcoins.
Trading volumes have also increased during upward pushes, showing strong participation from both retail and institutional investors. Kamran Asghar observed that ETH reached its $4,900 target through a breakout, reclaim, and pump pattern. . He said those who entered during the $1,300–$1,400 levels now hold triple returns, while shorts faced liquidations.
Institutional Inflows and Macroeconomic Support
Ethereum’s rally has also been supported by institutional inflows after the approval of spot Ethereum ETFs in July 2024. The products have attracted over $11 billion year-to-date, with $2.87 billion flowing in during a single week in August. BlackRock’s iShares Ethereum fund recorded the largest share of these inflows.
Standard Chartered recently updated its Ethereum forecast to $7,500 in 2025, projecting further growth to $12,000 by 2026 and up to $25,000 by 2028. Analysts pointed to institutional adoption, DeFi expansion, and Ethereum’s deflationary design as long-term drivers.
Macroeconomic conditions are also providing tailwinds. According to FedWatch data, the Federal Reserve is expected to cut interest rates twice in 2025, with the first reduction anticipated next week. Rate cuts typically increase demand for risk assets, which could strengthen Ethereum’s upward trajectory as it approaches a crucial resistance level.
