Just one step away from the ATH, industry analysis of Ethereum's future trend.

Original Title: Institutional money, regulatory clarity put Ethereum within striking distance of all-time high

Original author: Jason Shubnell

Original source: TheBlock

Compiled by: Mars Finance, Daisy

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Multiple forces are driving ETH to its all-time high, including record spot ETF inflows, new policy initiatives in the U.S., and the continuous growth of corporate diversification into ETH.

Analysts and industry leaders believe that ETH still has room for further increases. Standard Chartered has raised its year-end target price to $7,500, and some predict it will reach $6,000 in the short term—however, it is also possible to take profits as it approaches historical highs.

Behind Ethereum's sprint to historic highs is not a single catalytic factor, but rather a combination of multiple factors including institutional capital inflows, regulatory clarity, and improved market sentiment, which are turning skeptics into buyers.

Spot Ethereum ETF demand has hit record levels, with daily inflows reaching $1 billion. Meanwhile, recent policy changes, from the White House allowing 401(k) retirement plans to invest in alternative assets, to the introduction of new stablecoin regulatory rules under the GENIUS Act, have provided institutional investors with a clearer framework for participation.

Ira Auerbach, head of Tandem under Offchain Labs, stated, "The synchronization of policies, products, and infrastructure has created a rule system that allows innovation to return to its roots, paving the way for ETH to break through and maintain its historical high."

Corporate capital deployment is also boosting buying interest. Kevin Rusher, founder of the RWA lending platform RAAC, pointed out that companies diversifying their digital asset allocations away from Bitcoin is becoming a growth trend. He referred to it as a "wise business decision" and a strong endorsement of the "world computer," while noting that 97% of Ethereum holders are already in profit. Such profit levels may trigger some profit-taking, but Rusher expects the long-term trend to remain upward.

He stated in an email: "Will ETH rise to $6,000? Of course. And those who didn't get in at $300 will feel as disappointed as the person who used Bitcoin to buy pizza at Papa John's."

Earlier on Wednesday, Standard Chartered analysts raised their year-end price target for Ethereum from $4,000 to $7,500.

According to ETH price data from The Block, as of the time of publication, the trading price of Ethereum is approximately $4,724, having increased by 4.83% in the past 24 hours. The token reached an all-time high of $4,878 in November 2021.

Not all upward momentum comes from the fundamentals. Luke Nolan, a senior researcher at CoinShares, stated that although the Pectra upgrade in May did not directly affect the value of ETH, market sentiment was extremely low at the time. "Sometimes, just a little positive signal can trigger a shift." The result was a wave of short covering, coinciding with the passing of the GENIUS Act, as well as renewed market interest in Ethereum's role in stablecoins and tokenized real assets—Ethereum holds about 58% market share in these areas.

Nolan also pointed out: "A significant portion of the capital in the market has insufficient exposure to Ethereum, and many investors have been waiting on the sidelines until now, which further drives up the price. Considering this wave of crazy market activity, it is possible for prices to pull back as they approach or break historical highs, but I believe that as long as the overall market remains stable, the larger upward trend is not over yet."

Amid price fluctuations, industry insiders also emphasize that changes in market cycles do not alter the actual progress of work behind the scenes.

Charles Wayn, co-founder of the Web3 growth platform Galxe, stated: "This reflects the hard work of many developers." He added that even during market downturns, the community and developers still "maintain loyalty and faith."

As the trading price of Ethereum approaches historical highs, ETF fund inflows remain strong, and the market seems to be in a wait-and-see phase, anticipating new capital inflows and policy momentum, observing whether this second-largest cryptocurrency can break into the unknown new high territory.