Ethereum heading for new ATH at $5,000  

It looks like the second-largest cryptocurrency has set its sights on a new target — $5,000!Ethereum (ETH) is showing strong bullish momentum, and it has every chance of reaching that milestone.

After breaking its four-year record of $4,878, set in November 2021, Ethereum continued its rally. However, the altcoin later experienced a sharp correction and is now trading at about $4,632. However, crypto fans are betting on its explosive growth.

ETH’s current market capitalization stands at $559.3 billion, while its 24-hour trading volume has surged by 88%, reaching $55.7 billion.

Ethereum’s rally began after comments from Federal Reserve Chairman Jerome Powell, who hinted at a possible interest rate cut in September. The uptrend was further fueled by unprecedented investor demand for spot exchange-traded funds (ETFs) linked to ETH. Following the launch of these investment products, enthusiasm exploded. In August alone, more than $1 billion was raised in just one day.

Companies issuing Treasury bonds to purchase Ethereum also played a role in the coin’s rally. For example, BitMine Immersion has accumulated $7 billion worth of ETH, while SharpLink Gaming holds over $3.6 billion in the cryptocurrency.

The fundamentals for Ethereum’s bullish rally have also been strengthened by positive regulatory developments in the United States. The country has made significant strides in addressing crypto regulation and passing related legislation. The US Securities and Exchange Commission (SEC) issued key guidance on staking services, allowing providers to distribute rewards without the need for registration.

A major boost came from the passage of the GENIUS Act, which established clear rules for the issuance of stablecoins, most of which operate on the Ethereum blockchain.

Ethereum also received strong support from Vitalik Buterin, the project’s co-founder. He proposed enhancing the decentralization of the Ethereum network by introducing additional transaction activation channels.