Original title: Institutional money, regulatory clarity put Ethereum within striking distance of all-time high
Original author: Jason Shubnell
Original source: TheBlock
Translation: Mars Finance, Daisy
Quick overview
Multiple forces are driving ETH to historical highs, including record spot ETF inflows, new U.S. policy initiatives, and the continuous growth of corporate capital diversification towards ETH.
Analysts and industry leaders believe that ETH still has room for further increases, with Standard Chartered raising its year-end target price to $7,500. Some predict it will reach $6,000 in the short term—however, profit-taking is also possible as it approaches historical highs.
The sprint of Ethereum towards historical highs is driven not by a single catalytic factor but by multiple factors including institutional capital inflows, regulatory clarity, and improved market sentiment, all of which are converting skeptics into buyers.
Spot Ethereum ETF demand has reached record levels, with single-day inflows hitting $1 billion. Meanwhile, recent policy changes, from the White House allowing 401(k) retirement plans to invest in alternative assets to new stablecoin regulatory rules introduced under the (GENIUS Act), have provided institutional investors with a clearer framework for participation.
Ira Auerbach, head of Tandem under Offchain Labs, said, "The synchronization of policy, products, and infrastructure has created a rule system that allows innovation to return home, paving the way for ETH to break through and maintain historical highs."
Corporate capital allocation is also pushing up buying. Kevin Rusher, founder of the RWA lending platform RAAC, pointed out that companies diversifying their digital asset allocations away from Bitcoin is becoming a growing trend. He called it "a wise business decision" and a strong recognition of the "world computer," while noting that 97% of Ethereum holders have already made a profit. Such levels of profit might trigger some profit-taking, but Rusher expects the long-term trend to remain upward.
He stated in an email, "Will ETH rise to $6,000? Of course it will. And those who didn't get in at $300 will feel just as disappointed as the person who used Bitcoin to buy pizza at Papa John’s."
Earlier on Wednesday, Standard Chartered analysts raised the year-end target price for Ethereum from $4,000 to $7,500.
According to ETH price data from The Block, as of the time of writing, Ethereum's trading price is approximately $4,724, having risen 4.83% in the past 24 hours. The token reached a historical high of $4,878 in November 2021.
Not all upward momentum comes from fundamentals. CoinShares senior researcher Luke Nolan stated that although the Pectra upgrade in May did not directly affect ETH's value, market sentiment was extremely low at that time, "sometimes, just a little positive signal can trigger a shift." The result was a wave of short covering, coinciding with the passage of the (GENIUS Act) and a renewed market interest in Ethereum's role in stablecoins and tokenized real assets—Ethereum holds about 58% market share in these areas.
Nolan also noted that "a large portion of the funds in the market have insufficient exposure to Ethereum. Many investors were previously on the sidelines and are only now starting to enter, further driving the price up. Given this wave of crazy market conditions, it's possible for prices to correct when approaching or breaking historical highs, but I believe as long as the overall market remains stable, the larger upward trend is not over yet."
Amid price volatility, industry insiders also emphasize that changes in market cycles do not alter the actual progress of underlying work.
Charles Wayn, co-founder of Web3 growth platform Galxe, stated, "This reflects the hard work of numerous developers." He added that even during market downturns, the community and developers still "maintain loyalty and faith."
As Ethereum's trading price approaches historical highs, ETF inflows remain strong, and the market seems to be in a wait-and-see phase, waiting for new inflows and policy momentum to see if this second-largest cryptocurrency can break into unknown new high territory.
