Ethereum ($ETH ), the second-largest cryptocurrency, shows significant growth potential in 2025. As of August 2025, the price of ETH hovers around $4327, having peaked at $4864 in 2021. Analysts, including those from Deriv Blog, predict that Ethereum could surpass the $5000 mark by the end of 2025 due to several key factors.

The transition to Proof-of-Stake after the Merge in 2022 and Layer-2 upgrades, such as Arbitrum and Optimism, have reduced fees and increased network scalability. Over 30 million ETH are locked in staking, which decreases supply in the market and creates deflationary pressure. The growth of institutional investments, particularly through ETFs, and the accumulation of large players (e.g., a whale with 10,999 ETH) strengthen the bullish sentiment.

Technical analysis indicates the possibility of a breakout resistance at the level of $4800, which could open the way to $5000. However, market volatility, regulatory risks, and competition from Solana or Cardano remain challenges.

Experts at Standard Chartered predict a jump to $7500 in 2025 if institutional activity continues to rise. Considering these factors, Ethereum has every chance to reach $5000 if market conditions remain favorable.

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