Ethereum (ETH) price traded around $4,665 at press time, reflecting a 9.42% gain over the past week and a 1.20% decline in the past 24 hours.
The move reinforced bullish market sentiment even as monthly performance showed a slight 0.86% drop.
Analysts said the rebound came as institutional demand grew and spot ETFs absorbed large inflows. Traders increasingly viewed $10,000 as a potential target within the next year.
Traders Compared Current Cycle with Past Rallies
Market participants pointed to structural differences between this cycle and earlier phases.
Trader Merlijn (@MerlijnTrader) said that investors had once dismissed Ethereum at $1,500, doubted it at $2,200, and ignored it at $4,000.
He argued that the market now reflected broader participation from Wall Street and ETFs, which created different dynamics compared to earlier cycles.
Cas Abbé (@cas_abbe) referred to the Ethereum Rainbow Chart, a model using logarithmic growth curves with color-coded valuation bands.
According to Abbé, ETH traded well below the chart’s “bubble” range of $9,000 to $10,000.
He compared current skepticism to 2021, when ETH peaked at $1,400 before climbing to an all-time high of $4,954 later that year.
Ethereum (ETH) Price and ETF flows Shape Market Direction
Institutional inflows became a central driver of Ethereum’s recovery. The US Securities and Exchange Commission approved spot Ethereum ETFs in July 2024.
Since then, ETFs had drawn more than $11 Billion in net inflows, according to CoinShares. August marked the strongest period with $2.87 Billion added in a single week.
The majority of these flows originated in the United States. BlackRock’s iShares product captured the largest share, effectively reducing circulating supply.
Analysts argued that ETF accumulation created conditions for a supply squeeze.
Standard Chartered raised its forecasts in response, projecting ETH could reach $7,500 in 2025, $12,000 in 2026, and possibly $25,000 in 2028.
The bank cited institutional adoption and decentralized finance expansion as core drivers. ETH briefly set a new all-time high at $4,954 before retracing.
Market analysts said a decisive break above $5,000 might set the stage for ETH price discovery beyond previous records.
Technical readings showed mixed conditions. The Relative Strength Index (RSI) was close to overbought levels at the time of writing.
However, longer-term trend indicators remained supportive. Analysts linked sustained ETF inflows with shrinking supply as the backdrop for further gains.
Macro Conditions Supported Risk Assets
Broader economic trends also favored Ethereum. The Federal Reserve was expected to reduce interest rates twice in 2025, beginning as early as next week, based on CME FedWatch data.
Lower rates historically increased demand for higher-yielding assets, including tokens.
Ethereum’s supply also followed a deflationary pattern, with more ETH burned through transaction fees than issued through block rewards. This dynamic added to the institutional case for holding ETH.
Investor outlook stayed constructive as multiple factors aligned. Analysts noted that ETF accumulation, favorable macro policies, and Ethereum’s supply mechanics positioned ETH for continued strength.
For many, the combination created conditions where a $10,000 target within twelve months looked increasingly feasible.