Key Takeaways
- The ETH is trading around $4,173.40 with a market cap of $503.72 billion.
- ETH experienced a decline of 11% during the recent crypto market crash, fueled by U.S. President Trump’s announcement of a 100% tariff on China.
- It has rebounded as the macroeconomic pressure has eased.
- As the institutional interest remains intact, the price is projected to go up in the upcoming week, given that the macroeconomic landscape remains favourable.
The price of Etherium (ETH) declined around 11% following the crypto market crash, fuelled by the macroeconomic headwinds. U.S. President Trump’s announcement of a 100% tariff on China sent shockwaves across the financial markets, and the crypto market witnessed its market cap crashing to 3 trillion from a 4 trillion valuation. Despite the setback, the ETH has rebounded and is currently trading at $4000 level, backed by strong institutional interest, anticipations around the Fusaka upgrade, and mixed technical signals.
What’s Driving the Price of ETH?
At the time of writing this article, the world’s second-largest cryptocurrency is trading around $4,173.40 with a market cap of $503.72 billion. The trading volume had increased by 32.29% to reach $60.9 billion. The price of ETH is driven by several factors, such as the overall crypto market rebound after the crash, institutional interest, technical signals, and technological upgrades.
The earlier market crash that wiped around $20 billion from the crypto market was fueled by U.S. President Trump’s announcement of 100% tariffs on China. The crypto market rebounded as the U.S president softened his stance. The ETH, which had experienced a decline of 11% during the crash, has recovered as well, with trading again on $4000 level. The institutional accumulation is another factor that’s driving the prices of ETH up. It’s worth noting that BitMine Immersion Technologies, the largest corporate holder of the ETH, has reportedly acquired around 128,718 ETH worth $480 million following the buy-the-dip amid the crash.
The ETH Exchange Traded Fund also marked considerable inflows with led by BlackRock’s IBIT, which had received about $74 million yesterday alone. Another key factor driving the ETH’s price is the upcoming Fusaka upgrade. The technology upgrade will enhance the block gas limit and will introduce Peer Data Availability Sampling (PeerDAS). The block gas limit is said to reach 150 million, allowing more transactions per block. On the other hand, on the technical side, the ETH has reclaimed $4,111.
ETH is currently trading above its 200-day Simple Moving Average (SMA) of $ 3,164.95, and the 14-day Relative Strength Index stands at 45. 67, suggesting a neutral position.
Will ETH hit $5000?
The macroeconomic headwinds have caused big waves in the crypto market, and the world’s second-largest cryptocurrency was not spared either. Despite the setback, the ETH has shown resilience and reclaimed $4000 level. The crypto experts are not ruling out ETH reaching $5000 or beyond this year itself.
According to the crypto analysts, overcoming $4,500 could push the price toward $4,700–$4,900, and further, while failing to hold $3,500 will result in a subsequent decline. The ETH price predictions forecast a range of $ 4,163.90 to $ 6,877.47 for 2025.
The Bottom Line
The ETH, as the second-largest cryptocurrency, has strong fundamentals, yet the price trajectory in the upcoming week will be decided by how the trade talks between the U.S and China progress. Furthermore, the crypto experts are not ruling out pull-backs due to profit-taking. Amid the volatile situation, the crypto market participants are recommended to proceed with extreme caution and keep themselves updated regarding the key market indicators.