Market Momentum: Ethereum Surpasses $4,000, Analysts Predict $10K Target Amid Institutional Adoption

Ethereum Breaks $4,000 — Analysts Say $10K Could Be Next as Institutions Pile In

Ethereum has surpassed the significant milestone of $4,000, marking a new all-time high. This surge is being driven not just by retail traders but also by institutional investors shifting their treasuries toward Ethereum. Well-known crypto trader Aaron Bennett believes that this breakout has stronger foundations than past cycles and predicts ETH could potentially reach $10,000 in the near future.

Bennett notes that the current market “risk level” is 0.689 on historical charts, significantly lower than the usual threshold of 1.0 that often signals a market top. In contrast, the last time ETH crossed $4,000, the risk level was much higher, and the price quickly dropped. Given this healthier market environment, Bennett believes Ethereum has more room to grow.

On-chain data also indicates that Ethereum is starting to outperform Bitcoin, a trend that has often preceded strong ETH rallies in the past. Bennett suggests that while Bitcoin could potentially aim for $250,000, Ethereum might climb to $10,000 or higher alongside Bitcoin’s rise rather than at its expense.

The massive influx of institutional capital is another key factor driving this surge. Large corporate treasuries are now competing to acquire 5-10% of Ethereum’s total supply, with notable examples including BitMine holding 833,000 ETH and SharpLink now holding 498,884 ETH, making them the second-largest holder.

The pace of institutional adoption is also accelerating. With 13 out of the top 25 U.S. banks already working on Bitcoin products, many are expected to build Ethereum-based services, further solidifying its role in both decentralized finance (DeFi) and traditional finance. This has led to a significant increase in Ethereum ETFs, with ETH ETFs recording $461 million in inflows just yesterday.

Crypto trader EllioTrades also weighed in on the matter, suggesting that if demand continues to rise, a “fair value” for Ethereum could be over $50,000 per coin by 2026. While he expects ETH to realistically trade above $15,000 by the end of the year, he believes it’s possible for ETH to follow Bitcoin’s growth path should big institutions build financial systems on Ethereum and its Layer 2 networks.

As of now, ETH trades at around $4,175, representing a weekly gain of 2%. With a market capitalization of $503.5 billion, this milestone marks a significant shift in the crypto landscape.

Source: coinpedia.org