Analysts project Ethereum could reach $5,000 this year, driven by accelerating institutional adoption through ETF investments and a structural supply reduction across exchanges.
Global Ethereum ETFs absorbed $226.4 million in net inflows last week, maintaining an average weekly inflow rate of 1.6% over 11 consecutive weeks. This persistent capital influx reflects mounting institutional confidence in ETH as a core digital asset.
Simultaneously, Ethereum faces a potential supply shock as exchange reserves plummet to a 8-year low of 13.5%. This scarcity dynamic substantially reduces accessible sell-side liquidity in the market.
Technical indicators reinforce bullish momentum. Ethereum’s Spent Output Profit Ratio (SOPR) holds steady at 1.01, suggesting minimal immediate profit-taking pressure among holders. Price charts display a V-shaped recovery since 2024’s market trough, with ETH consolidating between $2,600-$2,800 before establishing foundations for a breakout.
The convergence of these factors—sustained ETF demand, critically low exchange inventory, and constructive technical formations—positions Ethereum for a potential climb toward $4,100 resistance before eyeing the $5,000 milestone.