Ethereum Surges Past $4,700 as Record Network Activity Signals Potential Rally Toward $5,000
Ethereum is still going strong, trading above $4,700 and up 2.3% in the last 24 hours. This puts it in a good position to break through the
Quick overview
- Ethereum is trading above $4,700, up 2.3% in the last 24 hours, and is poised to break the $5,000 mark.
- Record-breaking network activity has led to 1.875 million daily transactions, indicating strong demand for Ethereum's ecosystem.
- Institutional buying is driving exchange outflows, with a negative flow trend suggesting reduced selling pressure.
- Standard Chartered has raised its year-end price target for Ethereum to $7,500, citing strong fundamentals and potential for significant growth.
Ethereum ETH/USD is still going strong, trading above $4,700 and up 2.3% in the last 24 hours. This puts it in a good position to break through the important $5,000 psychological mark. The second biggest cryptocurrency in the world by market size is seeing a combination of positive technical signals and record-breaking network activity that might push it to new all-time highs.
Network Activity Reaches Historic Peaks Despite Market Share Challenges
Ethereum’s on-chain measurements show that the network is quite strong. There have been a record-breaking number of transactions every day, with about 1.875 million recorded—the most ever on the network. This sudden increase in activity shows that there is more demand for block space and more people are getting involved in the Ethereum ecosystem.
But this expansion is happening at the same time as more competition. The main chain of Ethereum is not as busy as the layer-2 solutions in its own ecosystem. For example, Arbitrum has 3.4 million daily transactions while Base has 8.6 million transactions. Also, other layer-1 blockchains, such Aptos and Solana, are taking market share. For example, Aptos handled 3.8 million transactions on Monday alone.
The competition has changed how Ethereum makes money. Since the Dencun upgrade in March 2024, network prices have gone down a lot. This made transactions cheaper for layer-2 networks. This has made it easier for everyone to use Ethereum’s ecosystem, but it has also moved a lot of economic activity away from the basic layer.
ETH/USD Technical Analysis Points to Critical Decision Point
When it comes to technology, Ethereum is getting close to a historically important barrier zone between $4,750 and $4,800. This level is the asset’s previous all-time high area from 2021, hence it is an important battleground for bulls and bears.
Analysts call this a “decision point” since record network activity and this important price level are coming together. If ETH breaks beyond $4,750 and stays above that level with a lot of transactions, it might enter a price discovery period that takes it above its all-time high. On the other hand, if it doesn’t break through this level, it might lead to consolidation or a possible drop back to the $3,950 support region.
Current momentum indicators show that positive sentiment is still strong, as the asset has gained an incredible 29% in value over the previous week. Ethereum is now very close to its all-time high, with only a 4% difference between it and the $4,878 record.
Institutional Demand Drives Exchange Outflows
On-chain data shows that institutions are still buying, which supports the bullish technical picture. According to CryptoQuant data, exchange net flows are still very negative, with an average daily outflow of 40,000 ETH over the past month. This trend usually means that there is less pressure to sell and more people are holding onto their assets.
Part of the reason for the negative flow trend is the activity of spot ETH ETFs, which recently saw their biggest day inflows ever, totaling $1 billion. So far this year, Ethereum ETFs have brought in $8.2 billion in investments, which is about 1.5% of Ethereum’s total market value.
Ethereum Price Prediction: Standard Chartered Eyes $7,000 Target
Ethereum’s rise is getting the attention of big banks. Standard Chartered has changed its price predictions a lot. They raised their year-end target from $4,000 to $7,500, which is almost twice what they said before. The bank has also set a long-term goal of $25,000 for 2028, which is very high.
Several basic things support this positive view. For example, more public companies are using Ethereum treasury strategies, which is similar to how MicroStrategy uses Bitcoin. In the United States, the GENIUS Act and CLARITY Act are making progress in Congress, which should make the ecosystem more liquid.
Technical analysts are also optimistic, with some saying that Ethereum might reach the $6,000 to $7,000 level this year if Bitcoin reaches $150,000 and the ETH/BTC ratio rises to 0.044. A strong break above the $4,850 resistance level will be the main thing that makes things happen.
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