Ethereum News Today: Ethereum Eyes $4,000 as Novogratz Predicts 8.5% Surge on Institutional Demand, Supply Constraints

Michael Novogratz, CEO of Galaxy Digital, has expressed a bullish outlook on Ethereum, forecasting that Ether could reach $4,000 and outperform Bitcoin within the next three to six months. His analysis centers on growing institutional demand for Ethereum, constrained ETH supply, and a strengthening narrative around the asset’s utility. “There’s not a lot of supply of ETH, and so I think ETH probably has a chance to outperform Bitcoin in the next three to six months,” Novogratz stated in an interview with CNBC [1]. He noted that breaking through the $4,000 threshold—approximately 8.5% above Ether’s $3,618 price at the time of publication—would trigger a “price discovery” phase, potentially accelerating its valuation trajectory [1].

Institutional adoption is a key driver of Novogratz’s thesis. Two firms, Sharplink Gaming and BitMine Immersion Technologies, have significantly increased their ETH holdings, collectively acquiring over $3.3 billion in Ether. BitMine reported owning 566,776 ETH (~$2.03 billion), while Sharplink holds 360,807 ETH (~$1.29 billion) [1]. Another firm, Ether Machine, plans to list on the Nasdaq under the ticker “ETHM” with over 400,000 ETH (~$1.5 billion) in assets under management, signaling further institutional confidence [1]. Novogratz emphasized that these purchases reflect sustained demand, stating, “They are raising capital every day and buying Ether” [1].

Ethereum’s relative strength against Bitcoin has also shown signs of divergence. The ETH/BTC ratio surged 36.53% over the past 30 days, reaching 0.03116, according to TradingView [1]. This trend aligns with Novogratz’s assertion that Ethereum is positioning itself as a near-term outperformer. However, he acknowledged Bitcoin’s potential to climb higher, citing a $150,000 price target based on chart patterns and narrative strength. “It feels like we’re destined to go higher, as long as this narrative continues,” he said [1].

While Novogratz’s forecast for Ethereum is grounded in supply constraints and institutional adoption, other analysts have made more aggressive predictions. BitMEX co-founder Arthur Hayes, for example, recently projected Ether could hit $10,000 by year-end [1]. Such optimism contrasts with cautionary notes about macroeconomic risks. Novogratz warned that a reversal in U.S. monetary policy—specifically, if President Donald Trump were to abandon plans for rate cuts—could disrupt the current bull market trajectory. “That would change my thesis, but until that happens, I think we’re heading to 150,” he added [1].

Ethereum’s current valuation at $3,618 suggests it remains below the $4,000 target outlined by Novogratz [1]. If it breaches this level, he anticipates a parabolic price surge driven by speculative demand and limited supply—a dynamic historically observed in Bitcoin’s price behavior [1]. The broader market context remains bullish, though investors are advised to monitor macroeconomic developments that could influence Ethereum’s trajectory.

Sources:

[1] [Ether May Soon Outperform Bitcoin: Michael Novogratz](https://cointelegraph.com/news/ether-price-4k-surge-outperform-bitcoin-galaxy-digital-ceo)

[1] [Ether Likely To Outperform Bitcoin In Next 3-6 Months — Mike Novogratz](https://zycrypto.com/news/)