Ethereum is on fire again. Analysts say its price could soon test the $4,500 mark, while institutional investors continue to pile in. Bitcoin remains solid, but Ethereum is attracting more attention thanks to its growing use cases and lower selling pressure. Mike Novogratz, the CEO of Galaxy Digital, predicts Ethereum could soon outperform Bitcoin. On top of that, Ethereum’s gas fee activity is hitting record levels, signaling a wave of renewed network demand.
Ethereum Price Momentum Signals New Upside
Ethereum recently reclaimed $3,600 after a quick dip to $3,500. Analysts point out that the main resistance level sits at $4,500, but the overall uptrend remains strong. On-chain data shows Ethereum is facing much lower selling pressure compared to Bitcoin. This means fewer ETH tokens are being sent to exchanges, which supports a potential breakout. Spot Ethereum ETFs have added over $16.6 billion in assets, showing strong investor confidence. With these inflows and reduced selling pressure, ETH could rally past $4,000 in the short term.
Ethereum Network Sees Record Gas Usage
Ethereum’s gas fee usage has surged to an all-time high. This is not due to short-term hype but steady demand from DeFi, stablecoin transfers, and whale activity. The network is processing around 1.6 million transactions daily, driven by both USDT and USDC transfers. Despite this massive activity, regular transaction costs remain low at around $0.15. Compared to 2021’s NFT mania, today’s gas surge is fueled by real utility and deep liquidity in DeFi platforms like Aave, which now holds over $29 billion in locked value.
Mike Novogratz Backs Ethereum’s Growth Story
Mike Novogratz believes Ethereum has more upside than Bitcoin because of its shrinking supply and institutional demand. He highlights that firms are raising significant capital to buy ETH, with SharpLink Gaming now holding over 360,000 ETH. Novogratz also notes that ETFs have brought over $20 billion of new money into crypto, boosting both retail and institutional interest. He calls Ethereum a “growth asset,” while Bitcoin remains the “digital gold” of the market. If macro trends stay favorable, Novogratz expects Ethereum to lead the next crypto rally.
Ethereum ETFs and Institutional Inflows Drive Momentum
The Ethereum ETF market is booming. The BlackRock Ethereum ETF recently hit $10 billion in assets, becoming the third-fastest ETF to reach that milestone. In contrast, Bitcoin ETFs have seen outflows over the past few days. These strong inflows show that investors are looking beyond Bitcoin for better returns. At the same time, Ethereum’s role as the backbone of stablecoin activity is unmatched. Over $128 billion worth of stablecoins now circulate on the Ethereum network, with 2.5 million active addresses involved in transfers.
Bitcoin Holds Steady but ETH Could Surge
Bitcoin still has a strong narrative, with Novogratz predicting it could hit $150,000 under current conditions. However, Ethereum’s combination of rising gas fee activity, ETF inflows, and institutional interest gives it an edge. Its price is likely to keep testing key resistance levels, with $4,500 being the next major target. Investors are watching ETH closely as it continues to outperform in the ETH/BTC pair. If Novogratz is right, 2025 could be the year Ethereum steals the spotlight from Bitcoin.
