Ethereum’s Ether Headed to $5K as Activity, Institutional Demand Grows

According to CryptoQuant,

“Given ETH's realized price—the average price at which holders purchased their ETH—the current upper limit for ETH’s price stands around $5.2k.”

Key Insights:

• Ether spot ETFs have recorded a 13-day inflow streak, totaling nearly $2 billion.
• The total ETH supply has hit its highest since April 2023, while the burn rate has increased since September.
• Ether's performance has improved significantly following the recent U.S. presidential election results.

Investor demand and network activity are pushing ether (ETH) closer to the $5,000 milestone. Analysts state that the current network activity metrics indicate a strong potential for ETH to reclaim its past highs.

Market Dynamics

The recent demand surge reflects the continued growth of decentralized applications and the increased transaction volumes, aligning with historical trends during bull markets. Increased activity suggests a rising usage of Ethereum's capabilities, ultimately impacting supply dynamics.

CryptoQuant emphasizes:

“ETH could be heading above $5k if current demand and supply dynamics continue.”

The growing bullish sentiment around Ethereum, coupled with regulatory outlook changes, is a pivotal factor in driving this momentum.