Ethereum is just a step away from its historical high, with 6,000 USD in sight?

Ethereum (ETH) price is approaching the historical high of $4,878 set in November 2021, currently reported at $4,724, up 4.83% in the past 24 hours.

The driving forces behind this wave of increase are not due to a single factor, but rather a combination of multiple influences such as the influx of institutional funds, increased regulatory transparency, and diversification of corporate asset allocation. With the spot ETH ETF setting a record for the largest single-day inflow in history, and new U.S. policies providing a clear framework for institutional participation, market sentiment is shifting from cautious to proactive.

Three Core Forces Driving the pump of ETH

(Source: The Block)

Institutional capital inflows hit a new high: Spot ETH ETF saw inflows of 1 billion dollars in a single day, setting a historical record.

Regulatory Clarification: The White House opens 401(k) plans to invest in alternative assets, and the "GENIUS Act" establishes new rules for stablecoins, lowering the entry threshold for institutions.

Market sentiment improves: After the Pectra upgrade, combined with favorable policies and a short squeeze market, ETH once again becomes the focus of capital pursuit.

Institutional Funds and ETF Capital Inflows

Ira Auerbach, the head of Offchain Labs Tandem, stated that the "triple resonance" of policy, products, and funding channels provides a runway for ETH to break through historical highs.

Recent ETF inflows are coming not only from traditional funds but also from large blockchain companies and institutional investors. For example, Kevin Rusher, founder of the RWA lending platform RAAC, pointed out that corporate asset allocation is shifting from solely Bitcoin to diversification, with ETH becoming an important allocation target.

Clarification of Regulation and Policy Dividends

(Source: The Block)

401K Opens Alternative Assets: Paving the Way for Introducing Digital Assets like ETH into Retirement Plans.

"GENIUS Act": Establish a regulatory framework for stablecoins and tokenized assets to enhance market confidence.

Luke Nolan, a senior researcher at CoinShares, pointed out that although the Pectra upgrade itself has a limited impact on price, the combination of policy dividends and low market sentiment has contributed to this strong rebound.

Trend of Corporate Asset Diversification

Rusher emphasized that 97% of ETH holders are currently in profit, demonstrating the confidence of long-term holders and the resilience of the market. He stated, "Will ETH pump to $6,000? Of course it will." He compared investors who missed the opportunity to buy at low prices to the story of buying pizza with Bitcoin back in the day—filled with regret.

Analyst and Market Perspectives

Standard Chartered Bank: Raises the end-of-year target price for ETH from $4,000 to $7,500.

Market Observation: ETH accounts for 58% market share in the stablecoin and tokenized real asset sectors, which is an important foundation for driving its long-term value.

Developers and the community: Galxe co-founder Charles Wayn stated that this wave of market activity is the result of years of effort by the community and developers, who have maintained their enthusiasm for building even in a bear market.

Short-term and Long-term Trend Outlook

In the short term, the ETH price is only about 3% away from its historical high, with ETF fund inflows and favorable policies continuing.

Short-term risk: High positions may trigger some profit-taking.

Long-term potential: If the macro market remains stable, ETH is expected to break through $5,000 and advance towards $6,000 and even $7,500.

Conclusion

Ethereum is standing at a historical turning point, with institutional funds, regulatory transparency, and corporate diversification providing strong support.

Although short-term fluctuations are inevitable, the long-term trend remains bullish. With more funds and policy dividends pouring in, ETH may not only refresh its historical high but also potentially open up a new price range.

Gate will continue to track the ETH market dynamics, providing investors with real-time quotes and strategy analysis.