Ethereum continues to edge closer to a crucial price milestone, maintaining its upward trajectory and reinforcing a broader bullish trend within the crypto market. Despite public sentiment appearing somewhat muted, Ethereum’s persistent upward movement and growing institutional interest suggest that the asset may soon enter a new phase of price discovery.

Analysts and traders alike are closely monitoring Ethereum’s price action as it approaches the psychologically significant $4,000 level. This level has become a focal point for both retail and institutional investors, with many anticipating a breakout that could set the stage for a sustained rally.

Market Optimism Grows Around Ethereum’s Performance

Ethereum’s recent surge past critical moving averages has reignited optimism across the crypto market. As it hovers just beneath the $4,000 threshold, the digital asset has reaffirmed its resilience and strong technical structure. The market’s attention has now turned to whether Ethereum can successfully breach this resistance and continue higher into uncharted territory.

Michael Novogratz, CEO of Galaxy Digital, recently weighed in on Ethereum’s promising trajectory. He expressed confidence that Ethereum could outperform Bitcoin in the near future, especially given the favorable market dynamics and Ethereum’s evolving ecosystem. Novogratz disclosed that Galaxy Digital holds over 52,000 ETH, with a current valuation exceeding $194 million. Although Bitcoin remains Galaxy’s top holding, Ethereum takes the second spot in the company’s portfolio.

Speaking on Ethereum’s potential, Novogratz remarked, “If ETH moves decisively above the $4,000 mark, it will likely enter a phase of price discovery, with new highs possible as investor confidence grows.”

Galaxy’s Expanding Crypto Holdings Reflect Market Shift

Data from Arkham indicates that Galaxy Digital’s overall crypto holdings are valued just below $1.9 billion. This valuation has grown in tandem with Ethereum’s rally toward $4,000 and Bitcoin’s ascent beyond $115,000. The synchronized rise in major digital assets has also drawn attention to other inflation-sensitive markets, such as precious metals.

Novogratz pointed out that assets like gold, silver, and cryptocurrencies are benefitting from global macroeconomic conditions. He specifically cited increased political pressure on central banks—especially the U.S. Federal Reserve—to reduce interest rates, coupled with reflation efforts from major economies like China. These factors have contributed to renewed interest in assets that serve as hedges against inflation and monetary instability.

“In today’s environment, many asset classes are entering a period of price discovery,” Novogratz explained. “Bitcoin could easily climb to the $130,000 to $150,000 range, but Ethereum’s supply dynamics and growing utility give it a unique appeal for investors looking to diversify.”

Ethereum’s Recovery Sparks Long-Term Optimism

Ethereum’s recent price movement has demonstrated a strong recovery from its earlier stagnation. Over the past month alone, ETH has surged more than 50%. Since April, it has gained over 160%, signaling a sharp reversal from prior market softness.

Matt Hougan, Chief Investment Officer at Bitwise, believes this is just the beginning of a broader rally. He emphasized the role of institutional adoption in driving Ethereum’s ascent, noting that major financial players are increasingly looking to ETH for long-term growth. According to Hougan, sustained demand from large investors will be a major catalyst for further price appreciation.

In particular, he highlighted Ethereum’s growing role in crypto treasuries. These firms, which manage large portfolios of digital assets, often seek assets that can appreciate faster than their own public valuations. As Hougan noted, Ethereum currently meets that criterion, which is driving more capital into ETH-focused companies.

“If the market value of these firms’ stock continues to outpace their crypto holdings, it encourages more fundraising, investment, and ultimately, demand for Ethereum,” he explained. “This creates a reinforcing cycle of growth for ETH.”

Institutional Capital Set to Flow Into ETH

Looking ahead, Hougan projects that institutional inflows into Ethereum could reach unprecedented levels. He predicts that up to $20 billion could be invested into ETH by treasuries and related investment products by the year 2026.

However, Ethereum’s issuance rate remains relatively low. Over the same period, only about 800,000 ETH are expected to be produced through staking and rewards. This imbalance between limited supply and rising demand could drive Ethereum’s price significantly higher.

Hougan believes that this mismatch lays the groundwork for a powerful supply squeeze. “When demand is this strong and supply is this constrained, prices tend to move quickly and sharply,” he stated. “We could see Ethereum emerge as the leading asset in this next wave of crypto growth.”

Analysts Eye $10,000 Target as Momentum Builds

Other crypto experts echo this bullish outlook. One such analyst, known as David_kml, recently noted that Ethereum’s current trajectory and increasing adoption rates suggest a long-term price target of $10,000 is realistic.

David_kml pointed to ongoing network upgrades, the steady expansion of Ethereum-based applications, and the growing volume of ETH held by long-term investors as indicators of strength. He believes that these factors, when combined with favorable macroeconomic trends, provide the perfect backdrop for Ethereum to rise dramatically over the coming quarters.

Moreover, Ethereum’s open interest across exchanges has surged to over $27 billion—a level not seen in years. Open interest measures the total value of outstanding derivative contracts, and such a spike often signals heightened investor activity and market conviction.

Leverage and Sentiment Paint a Complex Picture

While increasing open interest typically reflects strong market sentiment, it also raises the risk of sharp corrections, particularly if overly leveraged traders are forced to unwind positions. However, current data suggests that leverage remains under control.

Funding rates—a measure of the cost to maintain leveraged positions—remain relatively subdued despite rising open interest. This indicates that most traders have not overextended themselves, and that the speculative euphoria commonly associated with market tops has not yet taken hold.

In fact, many analysts view this balanced sentiment as a positive sign. It suggests that the market has room to grow and that a breakout above $4,000 may be sustained by healthy demand rather than short-term hype.

Ethereum Positioned for a Historic Run

All signs currently point to Ethereum entering a transformative phase. With price strength, expanding adoption, and institutional investment converging, ETH appears ready to assert itself as a dominant force in the digital asset space.

Should Ethereum break above $4,000, it could trigger a wave of new investments, further accelerating its rise. From supply constraints to surging demand, the conditions are ripe for Ethereum to set new all-time highs in the coming months.

As global markets continue to adapt to inflationary pressures, technological advancements, and evolving monetary policies, Ethereum’s role as both a financial asset and a foundational blockchain appears more critical than ever.

The next few weeks will be crucial in determining whether Ethereum can convert this bullish setup into a decisive breakout. If successful, ETH could find itself not just testing $5,000 or $6,000, but potentially racing toward the ambitious $10,000 target envisioned by bullish analysts.