As signs of capital rotation into altcoins become evident, Ethereum (ETH) is back on investors’ radar and they are looking at an optimistic price prediction of $5K.
On July 18, ETH spot ETFs surpassed those of Bitcoin, recording a single-day net inflow of around $402 million.
Corporations such as BitMine and SharpLink continue adding ETH to their treasuries, fueling anticipation for the next phase of the bull cycle.
With a looming SEC call on staking ETFs, traders are closely watching Ethereum price predictions to see if ETH can finally reach $5,000 in 2025.
Record ETF Inflows Signal Ethereum Breakout Ahead?
The main catalyst behind Ethereum’s latest rally is the historic surge in capital inflows into its spot ETFs.
These investment funds have attracted roughly $3.28 billion in net inflows in July alone, surpassing the total inflows for the entire first half of 2025.
Much of this capital has poured in from BlackRock’s iShares Ethereum Trust (ETHA), having net assets of $9.17 billion at the time of writing.
But what’s even more telling about ETH’s resilience is how corporations are viewing the second-largest crypto as a reliable treasury asset, much like Bitcoin.
To put things in perspective, billionaire Peter Thiel has bought a 9.1% stake in BitMine Immersion Technologies, a company with about 300,000 ETH as part of its treasury holdings.
Another company, SharpLink, added 32,892 ETH to its treasury in just a few hours and is seeking to raise to $5 billion to further expand its Ethereum reserves.
Meanwhile, on-chain data showed that one whale recently accumulated roughly 122,000 ETH in just one week.
These trends suggest that some of the largest Web3 players are acquiring the top altcoin in anticipation of an altseason to fully unfold.
Looking ahead, the market is also eagerly waiting to see if the SEC approves Nasdaq’s recent filing to allow BlackRock’s Ethereum ETF to offer staking rewards – a move that could easily clear the altcoin’s path above $4,000.
Ethereum Price Prediction: Bulls Target $5,000 as Institutions Back Rally
Ethereum has climbed more than 65% from its June 22 low, trading close to its six-month high at the time of writing.
As a result, the Relative Strength Index (RSI) has approached 84, signaling overbought conditions.
Historically, this reading signals overextension and a likelihood of at least a short-term cooldown.
Analyzing the asset’s volume profile, ETH was currently trading near its high liquidity band of $3,300–$3,500. So, a decisive move above or below this band could now lead to a relatively quick rally.
To the upside, there’s little technical resistance until roughly the $4,000 mark. On the support side, the volume profile indicated heavy trading interest in the $3,200 range.
In the meantime, the MACD momentum indicator was climbing at levels not seen since late 2024, a massive bullish signal of trend strength.
The ultimate test for the altcoin would be to clear the $3,800 – $4,000 resistance band to be able to test and potentially surpass its ATH.
But unlike previous attempts, ETH’s recent gains are backed by record institutional inflows and corporate accumulation, realistically clearing a path toward $5,000.
Ethereum’s derivatives data also corroborated the bullish technical picture, with a significant bullish bias among large traders.
On Binance, top traders hold more than three times as many long positions as short positions.
ETH and Altcoins Benefit From Regulatory Clarity
In a series of groundbreaking and historic moves for the Web3 space, regulatory clarity has been the most significant tailwind for crypto coins.
Donald Trump recently signed the GENIUS Act, while the US House of Representatives continues to show support for digital-asset legislation.
Adding to the list of bullish factors surrounding Ethereum’s price prediction, Bitcoin’s share of the total crypto market cap slipped from around 66% in late June to nearly 61% at press time.
As capital rotates into Ethereum and other altcoins, a sustained decline in BTC dominance could now precede another powerful rally in altcoins.
A confluence of these optimistic market developments has set a strong foundation for Ethereum price prediction of rally to the long-awaited $5,000 level this year.
Source: https://www.thecoinrepublic.com/2025/07/20/ethereum-price-prediction-5000-not-far/