Saad Ullah
Ethereum is dancing dangerously close to its all-time high of $4,878, trading just 2% below the record while flashing both warning signals and bullish momentum. ETH has crushed it lately, surging 32% in the past month and hitting $4,834 in recent sessions.
What's wild is how ETH has been smoking Bitcoin this year, gaining over 40% in 2025. The rally got serious when it reclaimed $4,000 in early August, then blasted through $4,500. Now everyone's asking: can it actually hit $5,000?
The fuel behind this rocket ship is impressive. Ethereum ETFs are crushing it with over $20 billion in assets, led by BlackRock's ETHA. Inflows keep coming – $287 million poured in Thursday alone, pushing total ETF assets to $30.54 billion. Plus, stablecoin supply jumped 10% to $147 billion, and total transaction value hit $880 billion.
ETH Price Prediction: Fed Cuts Could Send It to the Moon
The macro picture is setting up perfectly for risk assets like crypto. Everyone's betting the Fed will cut rates in September after those weak jobs numbers, and when that happens, money typically flows out of boring bonds into stuff like Ethereum.
Here's what's really bullish: ETH supply on exchanges keeps dropping. People are pulling their coins off trading platforms and stashing them in cold storage. That's classic hodler behavior, and it usually means fewer coins available to sell when things get choppy.
Network activity is also going crazy. Realized profits are spiking, which shows people are actually using the network and making money. Plus, dormant coins are waking up and moving around again – that's usually a sign that long-term holders are getting confident.
Ethereum (ETH) Hits 'Danger Zone' – Warning Signs Flash Red
But hold up – it's not all sunshine and rainbows. Santiment just dropped a warning that has everyone talking. Ethereum's short-term MVRV ratio is creeping toward 15%, which they call the "danger zone." Historically, when this metric hits that level, ETH tends to get slapped with corrections ranging from 10% to 25%.
The long-term MVRV is sitting pretty at 58.5%, meaning current holders are sitting on some serious gains. That's great if you bought early, but it also means there's a lot of profit-taking pressure building up. If people start cashing out, things could get ugly fast.
Here's the thing though – this pattern has played out before. Every time the 30-day MVRV crosses 15%, Ethereum usually pulls back. Smart traders are watching this metric like hawks because it's been pretty reliable for timing entries and exits.
ETH Price Prediction: The Verdict
So what's the deal? ETH is basically at a crossroads. On one hand, you've got institutional money flooding in, exchange supply dropping, and network activity going through the roof. On the other hand, valuation metrics are screaming that a correction might be coming.
The next few weeks are going to be absolutely crucial. If institutional demand can overpower the profit-taking pressure, we might see ETH break into uncharted territory above $5,000. But if those danger zone signals are right, we could be looking at a healthy 10-25% pullback before the next leg up.
Either way, this is shaping up to be one hell of a ride for ETH holders.
Saad Ullah
