Ethereum's next all-time high may not arrive as quickly as predicted, according to Nansen analyst Jake Kennis. Kennis believes the price could consolidate for weeks or months before breaking through, despite institutional demand supporting the rally. Some traders expect a faster move, with Crypto trader Ardizor predicting an ATH in days and Polymarket bettors putting the odds of ETH hitting $5,000 at 65%.
Ethereum (ETH) has been making significant strides, trading near its November 2021 all-time high of $4,865. However, analysts are advising caution, suggesting that a rapid return to new highs may not be imminent. Nansen analyst Jake Kennis predicts that the price could consolidate for weeks or even months before breaking through, despite strong institutional demand and ETF inflows [1].
The rapid 215% appreciation of ETH since April has led to a period of consolidation. Kennis attributes this to the asset’s sharp rise over a short period. He expects the market to digest these gains before a new high is reached. Despite this, the rally is expected to continue as long as bullish flows and narratives remain strong [1].
Institutional interest has been a significant driver of the current rally. Spot ETH ETFs recorded $1.01 billion in net inflows on August 11th, the largest single-day buying since their launch. This trend has been supported by corporate treasuries accumulating ETH, with BitMine Technologies alone holding 1.2 million ETH valued at $5.5 billion [1].
However, not all analysts agree on the timing. Bitwise’s chief investment officer, Matt Hougan, highlighted Ethereum’s improved narrative due to institutional adoption and ETF structures. Meanwhile, some traders remain optimistic, with Crypto trader Ardizor predicting an ATH in days and Polymarket bettors assigning a 65% probability of ETH hitting $5,000 by the end of August [1].
Market sentiment shows a mix of optimism and skepticism. While retail traders remain skeptical, institutional adoption and ETF inflows continue to support the rally. The current environment is marked by strong institutional flows and growing ETF interest, but analysts caution that patience is key as the market digests recent gains and prepares for the next phase of its rally [1].
References:
[1] https://www.ainvest.com/news/ethereum-news-today-ether-price-consolidation-analysts-expect-gradual-path-time-highs-2508/
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