Ethereum (ETH) is showing significant growth, surging 7% in 24 hours and 27% over the week. The price level reached $4,627, marking a four-year high.
Reasons for Ethereum's Rally
The price increase of Ethereum is mainly driven by rising institutional demand. Research indicates that retail investors continue to sell assets. Major companies like BitMine Immersion Technologies and The Ether Machine hold significant amounts of ETH. BitMine recently announced plans to raise $25 billion to accumulate more ETH. This institutional interest is expected to continue influencing the market.
Ethereum Foundation's Recent Sales
The Ethereum Foundation sold 4,095.18 ETH for $18.75 million. This move did not negatively impact the ETH price. Previously, the Foundation also made sales totaling over $12 million. Additionally, another entity called '7 Siblings' exchanged nearly 20,000 ETH for $90.4 million in USDC, and the market showed no reaction to these sales.
Future of Ethereum and Predictions
Analysts suggest that the current growth trend for ETH could persist until it reaches $5,241. Institutional purchases of Ethereum significantly outpace its issuance, which may accelerate further gains. Ethereum co-founder Vitalik Buterin warns of the risks associated with excessive leverage by institutional investors.
Ethereum displays a strong growth momentum driven by institutional demand, indicating high interest in this asset. Analyst forecasts suggest further rallies despite recent sales.
