Ethereum Price Targets $5K Amid Fluctuating Institutional Demand
Ethereum price has established a support level above $3,050, indicating potential bullish continuation. The altcoin's fully diluted valuation is approximately $378 billion, with a daily trading volume of around $35 billion. Currently, Ethereum trades at about $3,140, having gained over 2% today.
As Bitcoin reached an all-time high of over $97.8K, Ethereum has been experiencing increasing bullish sentiment. It is forming a potential bullish flag through a descending symmetrical triangle.
From a technical perspective, Ether price against USD appears to be completing the first correction of the Elliott wave theory. A successful breakout above the resistance level of approximately $3,444 could drive the price toward the next major liquidity range between $3,900 and $4,000.
Market trader Peter Brandt noted that Ether's price against Bitcoin is retesting a critical support trend line, suggesting a possible market reversal. With Bitcoin dominance exceeding 61%, Brandt believes Ethereum is positioned to outperform Bitcoin soon.
$ETH Will Soon join the Party & #Altseason will likely start when Ethereum breaks out of its Broadening Wedge.
Midterm Target: $5,440 #Crypto #Ethereum #ETHUSDT pic.twitter.com/uTBokHASDN
— Captain Faibik 🐺 (@CryptoFaibik) November 21, 2024
Why Bet on Ethereum Bulls Ahead?
Despite the growth of the Solana (SOL) ecosystem, Ethereum remains the leader in the web3 space. The Ethereum network currently has a total value locked (TVL) of about $60 billion and a stablecoins market cap nearing $98 billion.
Institutional investors are increasingly interested in tokenizing real-world assets (RWA) on the Ethereum blockchain, which could unlock trillions in global markets. The Ethereum network is already leading this initiative.
Demand for Ethereum among institutional investors has fluctuated since the approval of US spot Ether ETFs. These ETFs have seen a net cash inflow of $27.82 million, leading to total assets under management (AUM) of approximately $8.98 billion.
BlackRock’s ETHA has accumulated over $1.7 billion worth of ETH, while Grayscale’s ETHE experienced a net cash outflow of about $16.29 million, with an AUM of $4.66 billion.
With improving conditions in the Ether spot market, Ethereum price is positioned for significant gains in the coming months, with potential to exceed $10K during this bull cycle.