Can Ethereum Break New Highs Above 5000?

There is a possibility that the price of Ethereum could break new highs and reach 5000 USD. Here is a detailed analysis:

Recent Price Trends Strong: On August 9, 2025, Ethereum rose above 4200 USD, with an increase of over 8% within 24 hours, and a total market capitalization exceeding 500 billion USD. On the 10th, Ethereum continued to rise, breaking through 4300 USD, reaching new highs since the end of 2021, and gaining over 2.4% during the day, demonstrating strong upward momentum.

Strong Institutional Demand: On August 11, 2025, nine Ethereum spot ETFs listed in the United States attracted a total net inflow of 1.02 billion USD, marking the first time since the launch of these products in July last year that a single trading day exceeded 1 billion USD. Asset management giants like BlackRock and Fidelity led this influx of capital, highlighting the market's investment enthusiasm for Ethereum.

Supply Reduction Driving Price Increase: The supply of Ethereum on exchanges has fallen to an eight-year low. As the number of coins available for sale decreases, short-term selling pressure has also weakened. Meanwhile, the amount of ETH in wallets holding 100,000 or more ETH has increased from 18.1 million on May 21 to 18.8 million this past Monday, indicating that whales have not chosen to sell during the recent price increase but rather accelerated their accumulation, which helps drive up the price.

Technical Upgrades Provide Support: Ethereum's Pectra upgrade has improved scalability, enhanced data transmission efficiency, and laid the groundwork for artificial intelligence applications, which is expected to increase on-chain activity and restore the network's deflationary burning mechanism, thereby reducing Ethereum's supply and positively impacting the price.

Market Indicators Show Upward Potential: Ethereum's Spent Output Profit Ratio (SOPR) is currently at 1.01, reflecting strong market confidence, with investors unwilling to sell at a loss. Historically, SOPR remaining above 1 during an upward trend typically indicates that there is room for further price increases. Additionally, Ethereum's MVRV extreme deviation range shows that before the unrealized profits held by investors reach extreme levels between 4000 USD and 5000 USD, the ETH price still has room for further upward movement.