In recent months, Ethereum priced below $4,000 is attracting interest from both retail and institutional investors. This article examines the key factors driving positive forecasts for this asset.
Institutional Investments and Accumulation
Ethereum below $4,000 is not only appealing to retail investors but is increasingly viewed as a bargain by institutional players. In recent months, investment firms and large holders of ETH have actively started accumulating the asset. On-chain analysis indicates a noticeable increase in large wallet addresses holding Ethereum, suggesting strong faith in its long-term potential.
Shrinking Supply and Growing Usage
The shift of Ethereum to Proof of Stake and the implementation of the ETH burn mechanism via EIP-1559 lead to a gradual decrease in the total circulating supply. Simultaneously, activity on the Ethereum network has surged. DeFi platforms and NFT marketplaces continue to thrive, leading to increased demand for Ethereum. This combination of rising demand and shrinking supply creates economic conditions for the appreciation of the asset.
Predictions for $10,000
Analysts increasingly believe that the conditions are aligning for Ethereum to surpass the $10,000 mark in the current market cycle. While price predictions can never be guaranteed, the current fundamentals make a strong case for growth. Ethereum priced below $4,000 could be remembered as the last major opportunity before a historic rally.
The current situation with Ethereum, including institutional investments, shrinking supply, and increased network activity, provides reasons to expect price appreciation. Investors may view this as a potentially profitable opportunity for long-term growth.
