Ethereum (ETH) is making a strong comeback in the cryptocurrency market, approaching its all-time high as institutional interest grows. Currently trading at $4,630, ETH is just 5.35% below its November 2021 peak of $4,878, according to recent market data.
The second-largest cryptocurrency broke the $4,600 mark on Tuesday for the first time in years, outperforming other major cryptocurrencies including Bitcoin.
Market analysts are pointing to historical patterns that could indicate further growth for Ethereum. Crypto trader Yashasedu highlighted that during major bull runs, ETH typically reaches 30-35% of Bitcoin’s market capitalization.
During the 2021 bull market, Ethereum rose to reach 36% of Bitcoin’s market cap. Following this pattern, if Bitcoin reaches $150,000 – a 25% increase from its current price around $120,000 – ETH could potentially soar to $8,656.
Even at lower ratios between 21.70% and 30% of Bitcoin’s market cap, ETH could trade between $5,376 and $7,420 if Bitcoin hits the $150,000 mark.
Several experts expect Bitcoin to surpass $150,000 by the end of the year. Fundstrat co-founder Tom Lee, BitMEX co-founder Arthur Hayes, and Unchained market research director Joe Burnett all predict Bitcoin could reach up to $250,000 by the end of 2025.
The recent price movement is largely driven by institutional interest, particularly through Ethereum ETFs. On Monday, spot Ethereum ETFs recorded their biggest day of net inflows ever, with flows across all funds totaling $1.01 billion.
Year-to-date inflows into Ethereum ETFs have reached $8.2 billion, accounting for approximately 1.5% of ETH’s market capitalization, according to data from Messari.
In comparison, Bitcoin spot ETFs saw $178 million in inflows on the same day and $19.4 billion year-to-date, representing only 0.8% of BTC’s market cap. While Bitcoin continues to lead in absolute flows, ETH is attracting nearly double the capital relative to its size.
Institutional investors have been accumulating ETH at an impressive scale, with approximately 25 million ETH acquired since June. This accumulation is not driven by retail speculation but reflects strategic allocation by institutional firms.
Public companies are also embracing Ethereum as a treasury asset. SharpLink has appointed Ethereum co-founder Joseph Lubin as Chairman and holds over 360,000 ETH. BitMine has transitioned from Bitcoin mining to an Ethereum treasury model, while Bit Digital has shifted its focus to Ethereum, accumulating over 120,000 ETH.
Ethereum’s price rise is supported by growing strength in its ecosystem. The total value locked (TVL) in Ethereum recently topped $90 billion, showing increased usage of the network.
Blockchain technology firm BitMine Immersion Technologies announced plans to raise up to $20 billion for ETH purchases, further demonstrating institutional confidence in Ethereum’s future.
Regulatory developments are also playing a role in Ethereum’s growth. The signing of the GENIUS Act has established a new framework for stablecoins, which could enhance their adoption within financial systems.
Major banks including Morgan Stanley, JP Morgan, Citigroup, and Bank of America are actively exploring the implementation of dollar-pegged cryptocurrencies, further validating the potential of this market.
Approximately $130 billion in stablecoins are currently secured on Ethereum, accounting for roughly 50% of the market share, alongside $7.2 billion in tokenized real-world assets.
The convergence of stablecoins, tokenization, enterprise infrastructure, and treasury demand is resulting in tangible capital flows, as evidenced by on-chain activity and public company disclosures.
Trading experts like Michaël van de Poppe predict that Ethereum will likely see a new all-time high before entering a period of consolidation.
On Tuesday, ETH’s daily chart showed a clear price surge, confirming the strong momentum behind the cryptocurrency’s recent movement.
