Ethereum News Today: Ethereum Projected to Hit $4,000 as Institutional Demand Drives 8.5% Gains

Michael Novogratz, CEO of Galaxy Digital, has projected that Ethereum (ETH) could approach $4,000 in the coming months and potentially outperform Bitcoin (BTC) due to surging institutional demand. Speaking with CNBC, Novogratz highlighted that Ethereum’s limited supply and growing institutional adoption could create a supply shock, driving prices higher in the next three to six months [1]. At the time of the remarks, ETH traded at $3,618, with the $4,000 level representing an 8.5% increase based on on-chain data from Nansen [1]. Novogratz argued that breaching this threshold could trigger a “price discovery” phase, where market dynamics rapidly adjust valuations.

The analyst cited recent large-scale ETH purchases by firms like Sharplink Gaming and BitMine Immersion Technologies as evidence of institutional confidence. Sharplink holds 360,807 ETH ($1.29 billion), while BitMine controls 566,776 ETH ($2.03 billion) [1]. Additionally, Ether Machine, a firm planning a Nasdaq listing under the ticker “ETHM,” reportedly holds over 400,000 ETH ($1.5 billion), further underscoring institutional interest. Novogratz noted that such entities are “raising capital every day and buying Ether,” suggesting sustained demand [1].

Ethereum’s relative strength against Bitcoin has also strengthened, with the ETH/BTC ratio rising 36.53% over 30 days as of the interview date. This metric, tracking Ethereum’s performance against Bitcoin, indicates diverging trends between the two leading cryptocurrencies. The ratio stood at 0.03116 at publication, according to TradingView data [1]. Novogratz acknowledged this outperformance but emphasized that Bitcoin still has “more upside” in the near term. He cited a $150,000 target for Bitcoin, noting that “funny lines on charts” suggest the asset is “destined to go higher” [1].

While Novogratz’s forecasts align with broader bullish sentiment, the analyst also acknowledged macroeconomic risks. He warned that potential shifts in U.S. monetary policy under President Donald Trump—such as abandoning plans for rate cuts—could disrupt his thesis. “If Trump changes his mind on lower rates, it would change my thesis,” he stated, underscoring crypto markets’ sensitivity to central bank decisions [1].

Other market participants share similar optimism. BitMEX co-founder Arthur Hayes, for example, predicted ETH could hit $10,000 by year-end [1]. Bitfinex analysts identified $136,000 as a potential target for Bitcoin but cautioned the level may signal an overbought market. Despite these forecasts, Novogratz emphasized that Ethereum’s trajectory hinges on sustaining institutional buying and macroeconomic stability. The ability of firms like Sharplink, BitMine, and Ether Machine to maintain accumulation efforts will be critical in determining whether $4,000 becomes a temporary milestone or a catalyst for further gains.

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