By Frank Martin (MoneyAmped.com)
Ethereum has rallied 35% in the past two weeks. Still, its current price ($2,576) is nowhere near the all-time high of $4,867 set in 2021. However, analysts are optimistic that the long-awaited bull run for Ether has begun and expect the coin to rise to $5,000 before the year ends.
But what are the possible catalysts that could push Ethereum to $5k? Here are two factors, which, according to crypto analyst Adriano Feria, could help ETH record a new all-time high in 2025.
Ethereum-Based Products Remain the Sole Alternative to Bitcoin ETFs
Exchange-traded funds (ETFs) based on Bitcoin and Ethereum are currently the only crypto products available for US investors. While Bitcoin ETFs have attracted more inflows since their launch in January 2024, Ethereum ETFs have recorded massive net inflows since the start of May, signaling growing investor appetite for Ethereum products.
Feria says increased investor interest in ETH could be one of the factors that would help the coin rally to $5,000 this year. He adds that the creation of the ‘US Digital Asset Stockpile,’ which could include Bitcoin and Ethereum, will likely push the prices of the two coins higher.
Pectra Upgrade Has Enhanced Scalability, Creating Room for AI Adoption
While the emergence of layer-2 networks has helped Ethereum to reduce traffic, scalability is still a massive issue for the second-largest blockchain. However, that could be a thing of the past thanks to the Pectra upgrade, which went live last week.
Enhanced scalability on Ethereum could allow AI companies to launch their projects on the blockchain. As a result, the demand for ETH will likely grow, thus pushing its price higher.
Crypto Market Today
As mentioned, ETH is up 35% in the past 14 days. However, it has dropped 2.3% today. Similarly, Bitcoin is down 1.6% in the past 24 hours and is currently priced at $101,728. Notably, none of the top ten cryptocurrencies have posted gains today, suggesting that short-term traders are taking profits following last week’s rally. XRP, Solana, Dogecoin, and Cardano are the biggest losers, having shed at least 5% of their value.
