ETH Price Might Break The $5K Mark Due To These Three Reasons

ETH prices did go through some turbulent times as investors mostly remained on the sidelines amidst the fear of a trade war. However, analysts believe that a price surge is on its way due to some external factors. Some suggest that ETH could break its previous all-time high record and make a run for $5k. If this happens, it will be a sight for sore eyes as the market has been in the slump in the wake of a possible trade war. 

ETH is touted as the second biggest digital asset in the market. At the time of writing, ETH is traded around the $2,700 mark with a 4.61% downward trend. The price of the coin has dipped considerably by 35% since November. The current pricing is reminiscent of the 2024 February price for ETH. Therefore, some might suggest it is a ‘back to square one’ situation here.  

Glimmer Of Hope 

Source: CoinGlass

Even though the pricing of ETH does not look promising. Still, some catalysts can affect the pricing and even catapult it to the $5k mark. Firstly, data shows a consistent inflow of spot ETH ETFs from Wall Street Investors. There have been daily inflows this month. This has raised the total inflow since inception to $3.15 billion. 

Secondly, Coinglass data suggests that ETH reserves have decreased in the last few days. As per current data, there are around 15.34 million tokens in the market. This is considerably lower than the previous month’s 16.2 million. This suggests that investors are still showing some interest in the coin. Therefore, there can be a price surge due to decreased supply. 

Thirdly, the ETH network is currently catching up with Solana. ETH is showing signs of going toe-to-toe with Solana regarding decentralized exchange transactions. Therefore, this shows that ETH is still active and can provide some traction in the long run. Hence, signs show that ETH might be priming itself for a major price breakout.