Ethereum price has reached a new all-time high, and analysts have started making predictions for its further increase, pointing to a level of $5,400. Rising investor interest and supply reduction are also contributing to the new bullish trend.
Ethereum Price Hits New All-Time High
After 1,381 days of holding, Ethereum holders are celebrating a new all-time high. On August 22, ETH surged following Jerome Powell's hints about a possible rate cut in September. Daily trading volume spiked by 147% to $81.18 billion, indicating strong bullish sentiment in the market.
Analysts Predict Further Price Increase
Analyst Washigorira noted a bull flag pattern on the charts, which typically indicates strength, suggesting that ETH could target $5,400. Another analyst, Myles Ginvest, added that the next phase could extend to $5,500-$5,800 if ETH can hold near its recent breakout levels. Increased open interest in Ethereum has also risen by 15%.
Ethereum Supply Shrinks on Exchanges
Ethereum's supply on exchanges has shrunk to just 18.8K ETH, as whales actively withdraw their assets. This creates conditions for potential price increases. Additionally, former U.S. President Donald Trump made headlines by purchasing $4.9 million worth of ETH, which adds confidence to Ethereum's bullish narrative. Institutional demand has also rebounded, as evidenced by ETF inflows totaling $337 million.
Given the current market sentiment and potential price levels, Ethereum appears promising. Potential investors and traders continue to show interest, which could lead both to price increases and further supply constraints.
