Ethereum (ETH) has crossed the $4,000 mark for the first time since December 2022. This article explores the reasons behind the price surge, the role of institutional investors, and traders' predictions for the future.
Reasons for Ethereum's Rise
The price increase of Ethereum is primarily attributed not only to retail traders but also to large institutional investors who have begun reallocating their assets into ETH. Trader Aaron Bennett notes that the current risk level for Ethereum is around 0.689, which is below the 1.0 threshold that indicates a potential market peak. In past cycles, when reaching $4,000, the risk was significantly higher, resulting in sharp price declines.
Institutional Investments in Ethereum
One of the key drivers of this growth is the activity of corporate investors seeking to acquire 5-10% of Ethereum's total supply. For instance, BitMine has expanded its treasury to 833,000 ETH, becoming the largest public holder, while SharpLink now holds 498,884 ETH, making it the second-largest holder. Furthermore, 13 out of the 25 largest U.S. banks are already working on Bitcoin products and are looking to develop Ethereum-based services, enhancing its role in DeFi and traditional finance.
Ethereum Price Prediction for 2026
Crypto trader EllioTrades anticipates significant gains for Ethereum by 2026 if demand continues to rise. He asserts that the 'fair value' of ETH could exceed $50,000 per coin, given Ethereum's growing importance in the market. However, he realistically expects ETH to trade above $15,000 by the end of the year if large institutions build financial systems on Ethereum and its Layer 2 networks.
Ethereum is showing significant growth driven by institutional investor participation and sustained demand. Traders' forecasts inspire hope for continued development and price appreciation for ETH, making it a vital asset in the cryptocurrency market.
