$ETH
Is ETH about to break $5000?
Brothers, the recent trend of ETH is quite strong, breaking $5000 no longer seems like a dream. The demand for ETFs is skyrocketing, inflationary pressures are intensifying, and with some institutions showing bullish indicators, let's take a look at what's really going on.
Hot demand for spot ETFs, driving 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, hitting a historical high!
September's low warmed up: After dropping to 2.716 million ETH, funds are flowing back, indicating that investor interest in Ethereum has been reignited.
The price-boosting effect of ETFs: As funds continue to pour in, this strong buying pressure may push the price of Ethereum close to or even exceed historical highs.
Bullish brothers, this trend is bullish!
ETH supply dynamics: Deflation is here!
Total supply: The supply of Ethereum has reached 120 million ETH, a new high since April 2023.
Surge in the 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 burned.
Burn rate exceeds new issuance rate → Supply tightening pressure → Price is more likely to rise.
The supply and demand dynamics of ETH create a stronger foundation for price increases. Brothers, scarcity = more valuable!
Valuation indicators: Target price set at $5000+
Historical verification: 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 valuations, these three factors strongly support Ethereum's push towards $5000. If you have holdings, hold them patiently; if you haven't gotten in yet, choose your entry point wisely! 🚀
