Ethereum (ETH) has been nearing all-time highs recently, with some analysts predicting the price could surpass $5,000.
Javier Rodríguez Alarcón, chief investment officer at digital asset investment firm
“Whether Ethereum reaches $5,000 will depend on a combination of continued institutional demand, improved scalability through upgrades, and a favorable macro environment,” Rodriguez-Alarcon said in a statement. “Spot Ethereum ETFs saw over $1.3 billion in inflows in the last week alone, demonstrating renewed strong belief from institutional investors.”
According to the analyst, on-chain data and the accumulation pattern of large investors known as “whales” suggest that Ethereum could enter an expansion phase similar to Bitcoin’s rally in 2020.
Rodriguez Alarcón, who previously worked at major firms such as BlackRock and JPMorgan, said risk assets also benefit from expectations about the Fed's interest rate policy. “The Fed's dovish macro stance, pressure on fiat currencies, and underlying positive momentum could trigger further capital inflows into risk assets,” he said. “In this environment, Ethereum may benefit disproportionately due to its fundamental role in DeFi, stablecoins, and tokenization infrastructure.”
Rodriguez-Alarcon pointed out that the Fusaka upgrade, scheduled for November, will bring important improvements such as parallel execution within the Ethereum Virtual Machine (EVM). He said this step will improve the scalability of the network and reduce bottlenecks in Ethereum's next growth cycle.
*This is not investment advice.
