Ethereum News Today: Investor Confidence Fuels Ethereum's $5K Ascent

Ethereum’s price trajectory appears to be gaining momentum, with data suggesting a potential path toward $5,000. Recent onchain activity and investor sentiment have shown significant signs of strength. The Ethereum network reported a 63% surge in transactions and a 26% rise in active addresses over the past 30 days, outperforming other major blockchains like Solana and BNB Chain, which saw minimal or negative growth in key metrics [2]. This increase in network engagement, alongside a 33% rise in ETH’s price over the same period, indicates growing confidence among investors and users.

The Nasdaq Index’s 1.8% increase further reinforced the return of risk appetite in financial markets, a trend that often benefits high-risk assets like cryptocurrencies [2]. This shift coincided with remarks from Federal Reserve Chair Jerome Powell, who signaled a more accommodative monetary policy outlook. Bond markets now price in a 45% probability of interest rates falling below 3.5% by March 2026, up from 37% the previous week [2]. Lower borrowing costs can alleviate financial pressure on companies and reduce systemic risk, potentially encouraging broader investment in riskier assets, including Ether.

Futures data also supports the bullish case for ETH. The monthly futures premium for Ethereum is currently at 7%, up from a bearish 4% earlier in the week, suggesting increased demand for leveraged exposure [2]. Open interest on Ether futures remains strong at $69 billion, a level that indicates robust participation in the market [2]. Meanwhile, the Ethereum-based DeFi ecosystem has seen total value locked (TVL) climb to $97 billion, the highest since November 2021 [3]. Institutional investors have also shown interest, with spot Ethereum ETFs attracting over $2.8 billion in a single week, including a record $1.02 billion inflow on August 11 [3].

Despite the positive momentum, some traders remain cautious. Ether still trades below its 2021 all-time high of $4,868, while BNB and Tron have already exceeded their previous peaks [2]. This divergence highlights differing levels of optimism across the crypto market. However, Ethereum’s fundamentals continue to improve, with consistent network activity and strong futures metrics reinforcing the potential for a breakout. Analysts like Fundstrat’s Sean Farrell have even predicted ETH could reach $10,000 by year-end, though these forecasts should be treated as speculative until proven by market action [3].

The broader market context suggests that Ethereum is well-positioned to benefit from the ongoing shift in risk appetite. With a combination of rising onchain metrics, institutional adoption, and favorable macroeconomic conditions, the case for a move toward $5,000 is gaining credibility. Investors are closely watching key levels and liquidity in futures markets, which could provide further confirmation of the asset’s direction in the coming weeks [2].

Source:

[1] title1 (https://www.theblock.co/data/crypto-markets/futures/aggregated-open-interest-of-ethereum-futures-daily)

[2] title2 (https://cointelegraph.com/news/eth-data-and-return-of-investor-risk-appetite-pave-path-to-5k-ether-price)

[3] title3 (https://thedefiant.io/news/blockchains/ethereum-on-chain-activity-hits-2025-high-with-usd97-billion-locked-in-defi)