$ETH
Is ETH about to break $5000?
Brothers, the recent trend of ETH has been quite strong, and breaking $5000 seems no longer a dream. With soaring ETF demand, increasing deflationary pressure, and some bullish indicators from institutions, let’s take a closer look at what’s happening.
Hot demand for spot ETFs pushing Ethereum to new highs?
Since the launch of the spot Ethereum ETF in July 2024, the holdings of ETH have surged from 3.095 million to 3.41 million, reaching an all-time high!
Recovery from September lows: Previously dropped to 2.716 million ETH, now funds are flowing back, indicating that investor interest in Ethereum has been reignited.
Price boost effect of ETFs: As funds continue to pour in, this strong buying pressure may push the price of Ethereum close to or even beyond historical highs.
Bullish brothers, this trend is definitely bullish!
ETH supply dynamics: Deflation is here!
Total supply: Ethereum's supply has reached 120 million ETH, a new high since April 2023.
Surge in burn rate: The average daily burn in August was only 80 ETH, but recently, the average daily burn has skyrocketed to 2700 ETH.
What does this signal? Simply put:
Increased network activity → Higher transaction fees → More ETH being burned.
Burn rate exceeds issuance rate → Supply tightening pressure → Price easier to rise.
The supply-demand dynamics of ETH create a stronger foundation for price increases. Brothers, scarcity = more valuable!
Valuation indicators: Target price set at $5000+
Historical validation: This valuation aligns with data from the peak of the bull market in 2021.
Bullish conditions: If the current demand and supply trends continue, ETH is likely to break and exceed previous historical highs.
ETF demand + deflationary pressure + historically high valuation, a triple boost, making Ethereum's push towards $5000 almost a certainty. If you have some, hold patiently; if you haven't gotten in yet, choose your entry points wisely!
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