Ethereum has reclaimed the $4,700 mark, reinforcing bullish sentiment in the market as traders and analysts increasingly point to $10,000 as the next major milestone.
The recovery comes amid growing institutional demand, technical upgrades, and macroeconomic tailwinds that are reshaping the outlook for the world’s second-largest cryptocurrency.
Traders See Five-Digit Ethereum on the Horizon
Market analysts are becoming more confident that Ethereum’s rally is far from over. Popular trader Merlijn The Trader (@MerlijnTrader) captured this sentiment, saying that investors once “laughed at $1,500, doubted at $2,200, and ignored $4,000,” but now “the chart is screaming five digits.” He argues that this cycle is unlike previous ones, with Wall Street and ETFs adding unprecedented momentum.
Ethereum’s Rainbow Chart shows ETH far from bubble territory, echoing 2021’s premature $1,400 top calls as traders eye $9K–$10K next. Source: @cas_abbe via X
Adding weight to the bullish case, Cas Abbé (@cas_abbe) pointed to the Ethereum Rainbow Chart from Blockchaincenter.net, which uses a logarithmic scale and color-coded valuation zones ranging from “Accumulate” to “Max Bubble Territory.” Abbé stressed that Ethereum’s current level of around $4,581 still well below the chart’s $9K–$10K “bubble” zone. He compared today’s skepticism to 2021, when many believed Ethereum had peaked at $1,400 before it surged to an all-time high of $4,881 later that year.
Institutional Demand and ETF Momentum
Ethereum’s rally has been significantly supported by institutional inflows following the U.S. SEC’s approval of spot Ethereum ETFs in July 2024. Since then, ETFs have attracted over $11 billion in inflows year-to-date, with a record $2.87 billion added in a single week this August, according to CoinShares.
Most of these flows originated from the U.S., with BlackRock’s iShares fund capturing the largest share. Analysts argue that ETFs are removing supply from circulation and fueling a potential supply squeeze. Standard Chartered recently upgraded its Ethereum price forecast to $7,500 in 2025, projecting further growth to $12,000 by 2026 and as high as $25,000 by 2028, citing institutional adoption and DeFi growth as major drivers.
Technical Analysis: A Push Toward $10K
Ethereum briefly set a new all-time high at $4,953 this cycle before pulling back. Analysts note that a correction toward $4,000 could provide a stronger launchpad for the next leg up. If ETH breaks above the psychological $5,000 resistance, momentum could carry it into uncharted territory.
Ethereum eyes $10K as cycles repeat, with ETFs and Wall Street fueling the next bullish surge. Source: @MerlijnTrader via X
Technical indicators show mixed signals, with the Relative Strength Index (RSI) suggesting short-term overbought conditions, but longer-term charts remain bullish. As Standard Chartered put it, Wall Street inflows and shrinking supply “are creating the perfect backdrop for higher prices.”
Macro Tailwinds and Investor Outlook
Macroeconomic conditions also favor risk assets like Ethereum. The Federal Reserve is expected to cut interest rates twice in 2025, beginning as early as next week, according to FedWatch data. Rate cuts typically increase appetite for higher-yield assets such as cryptocurrencies.
This backdrop, coupled with Ethereum’s deflationary supply and rising institutional adoption, has many investors convinced that a push toward $10,000 ETH is not just possible but increasingly likely within the next 12 months.
Final Thoughts
Ethereum’s climb back above $4,700 highlights renewed optimism across both retail and institutional markets. With ETFs channeling billions into the asset, network upgrades improving scalability, and traders eyeing the $10K threshold, Ethereum appears well-positioned for further gains.
Ethereum (ETH) was trading at around $4,728, up 4.71% in the last 24 hours at press time. Source: Ethereum Price via Brave New Coin
Still, caution is warranted. The Rainbow Chart, while widely followed, is not a predictive tool, and volatility remains an inherent risk in crypto markets. Yet, the combination of bullish sentiment, strong fundamentals, and macro support is giving Ethereum one of its strongest cases for five-digit valuations in its history.
