Ethereum remains just shy of a pivotal mark, reinforcing its ongoing bullish market structure with perpetuating bullish momentum and waning public sentiment.
Market participants are eagerly awaiting the ETH breakout above the $4K mark after the aggressive recovery above the moving average price and above the $4K critical mark.
As of the latest market update on Thursday, Michael Novogratz, the CEO of Galaxy Digital, believes that ETH might have the chance to outperform Bitcoin, given that Novogratz confirmed Galaxy Digital’s holdings to be above 52,000 Ethereum, valued at $194 million.
Commenting on the crypto space, he reiterated that Bitcoin remains the company’s largest holding, while Ethereum is second.
Commenting on the bullish outlook positioned at the $4,000 mark, Novogratz stated, “ETH is entering its price discovery phase if it rises above 4,000.”
Based on Arkham data, Galaxy’s cryptocurrency portfolio is worth just under $1.9 billion. a number that increased concurrently with Ethereum’s surge to the $4,000 mark and Bitcoin’s ascent above $115,000. Novogratz pointed out that “inflation markets” like gold, silver, and cryptocurrency assets have gained traction due to the broader macroeconomic environment, characterized by political pressure on the Fed to cut rates and a rise in global reflation from nations like China.
“In many of these markets, we’re in the price discovery phase,” Novogratz stated. Bitcoin could easily hit $130,000 to $150,000, but Ether is more appealing due to its supply dynamics and expanding user base.
Ethereum to rise further in coming months
Ethereum (ETH) has recovered well, increasing by more than 50% in the last month. It has increased by over 160 percent since April, which is a significant change following a period of subdued performance.
According to Bitwise Chief Investment Officer Matt Hougan, this increase is only the beginning, and he cites growing institutional demand as a major factor that could make Ethereum to rise even further in the months ahead. He highlights increased demand as the primary driver of Ethereum’s potential rise in the upcoming months.
Treasury adoption centered on Ethereum is growing rapidly. The expansion of crypto treasury firms depends on their stock price being higher than the value of their crypto assets, as Hougan noted. This requirement is currently met by businesses focused on Ethereum, which encourages additional funding and growth. If the value of the public stock of crypto treasury companies exceeds the value of their crypto assets, that is key to their growth. Currently, this is the case for ETH treasury companies.
More companies to invest in Ethereum
Wall Street companies are likely to keep investing in ETH. According to Hougan, up to $20 billion in ETH could be absorbed in 2026 by Ethereum treasuries and related investment products.
- However, only about 800,000 ETH is expected to be produced during that period. Hougan notes that the strong demand relative to supply suggests Ethereum’s price may increase further.
- Crypto analyst David_kml agrees, pointing out that Ethereum’s value could rise substantially due to its current momentum and adoption trends. Given market developments, he considers $10,000 a reasonable long-term target.
- Ethereum’s open interest on all exchanges has risen to over $27 billion, the highest level in years, according to sentiment analysis. This shows a huge increase in leveraged positions and a rise in market speculative activity.
Rising open interest and price have historically indicated confidence and trend strength, but they also raise the possibility of a long squeeze if the market reverses. Notably, funding rates are at comparatively modest levels because of high OI. This implies that most traders are not overly leveraged and that the euphoria connected to significant tops is not yet occurring.
