Ethereum achieved a fresh milestone, exceeding its previous in history the highest set in 2021, cooperating above USD 4,900 before a compact correction. At the time of writing, ETH trads around 4,655 USD, which is an augment in 8.2% over the past week.
This rally occurs after three years of consolidation below its former peak, which means a significant moment for the second largest cryptocurrency by market capitalization. It is not surprising that the rush up Ethereum also changed market moods, which was restored by most ETH owners.
The latest movement was associated not only with retail activities, but also with the growing institutional participation. Analysts say that this demand may be the main factor supporting the renewed strength of the Ethereum market.
Institutional demand and market positioning
One of the participants of Cryptoquant, known as Oinonen, Highlighted As Ethereum is more and more attracted by institutional interest, signaling a change in a wider narrative.
While Bitcoin was historically perceived as the preferred digital resource for immense investors, the utilize of Ethereum in decentralized finances (DEFs) and recent inflows to ETH (ETF) current funds change their perception.
“Ethereum currently appears as a claimant of Bitcoin’s institutional domination,” wrote Oinonen. As an example, he pointed to Immersion Tom Lee technologies, which purchased ETH worth $ 6 billion in just two months.
This itself increased the market capitalization of Ethereum from $ 300 billion to $ 557 billion. In the context of Mikrostrategy, led by Michael Saylor, he accumulated Bitcoins worth about $ 3 billion in the same period, emphasizing how the latest accumulation of significant ETH has become.
This augment in institutional demand is also compatible with the technical breakthrough of Ethereum. The price campaign suggests not only speculative purchases, but also structural changes in the way of integration of assets with professional wallets.
Because ETFs are now approved and trade in national platforms in many regions, the change is perceived as an essential milestone for the role of Ethereum on global markets.
Ethereum compact and prospects for variability
Another factor driving ETH price is to give up compact positions on Binance. Oinonen noticed that Ethereum has long been a privileged advantage for traders betting on declines.
An unexpected break to fresh ups, however, caused what he described as a “short squeeze”, forcing the bears of traders to redeem ETH to cover their losses. This purchasing pressure strengthened the rush up and contributed to a quick transition in the direction of USD 4,900.
“The market enters the so -called” compact compression season ” – explained the analyst, adding that the persistent Ethereum rally can still exert pressure on compact sellers. Although this scenario supports compact -term profits, it also introduces the possibility of increased variability as the position develops.
Looking to the future, Oinonen expects that both Ethereum and Bitcoin will press on further ups in the coming months, although he warned that market correction may appear between the end of 2025 and at the beginning of 2026.
Supported between institutional demand, the influx of ETF and the dynamics of the derivative instruments market will probably determine the trajectory of Ethereum during this period.
A distinguished picture created from DALL-E, chart from TradingView
