Ethereum is closing in on the $5,000 mark, with institutional investors driving the surge. The world’s second-largest cryptocurrency touched a record high of $4,956, underscoring a growing split from Bitcoin’s price trajectory.
The rally has been steep: ETH is up more than 85% in the past three months, outpacing both Bitcoin and most other major digital assets. While traders debate whether this momentum will last, the on-chain data shows steady accumulation by large holders.
Key Points
- Whale Buying: Institutional wallets added $1.67 billion worth of ETH over the past week, even as the token set new records.
- Profit-Taking Signs: Some long-term holders are trimming positions, hinting at a possible short-term pullback.
- Technical Levels: Key support sits around $4,610, while a decisive break above $4,956 could set up a move toward $5,500.
The On-Chain Tug-of-War
Large investors are playing a decisive role. Wallets holding between one and 100 million ETH accumulated 350,000 tokens in the past week, worth roughly $1.67 billion. This is not retail speculation—it’s deliberate positioning by institutions at record prices.
Derivatives markets echo that trend. “Ethereum is showing a stronger picture compared to BTC recently,” noted analyst @cryptometugce on X. Rising open interest on CME suggests professional traders are positioning for continued outperformance, with retail yet to fully participate.
Still, there are signs of caution. Ethereum’s “Liveliness” metric—an indicator of whether older coins are being spent—recently climbed above 0.70. The last time that happened was early August, just before ETH corrected from $4,748 to $4,077.
Support appears firm, however. On-chain heatmaps show heavy buying between $4,592 and $4,761, creating a base of recent entrants likely to defend their positions.
Ambitious Targets Ahead
With support levels in place, some traders are eyeing much higher milestones. Analyst The Scalping Pro pointed to $7,500 as a “very conservative” target based on Fibonacci extensions. They added that if Ethereum repeats even half of its prior cycle’s performance, prices could reach between $10,146 and $11,600, with a full repeat implying $15,650.
ChainStreet’s Take
Ethereum’s climb is beginning to challenge Bitcoin’s dominance among institutional investors. For years, Bitcoin was treated as the only serious allocation in crypto portfolios—the digital gold for corporate treasuries. That assumption is now shifting.
ETH has matured into a productive asset: it generates yield through staking, secures the largest ecosystem in decentralized finance, and underpins NFTs and consumer applications. Institutions appear to be treating it less as a speculative trade and more as core infrastructure for the digital economy.
Bitcoin remains the entry point for many, but Ethereum is increasingly the asset long-term capital is choosing to hold. The latest rally reflects not just price momentum, but a broader repricing of Ethereum’s role in global markets.
