Ethereum Drops After $5K Peak, Whales & Analysts Eye $15K Target!

The second-largest cryptocurrency, Ethereum (ETH), recently soared to new heights, reaching a record $4,955 before pulling back. This came after the coin had been consolidating around $4,000 for several weeks, making the $5K target feel within reach.

However, just as quickly as Ethereum touched its peak, the price dropped sharply to around $4,422, leaving many traders and investors wondering what's next.

Despite this recent dip, prominent analysts, including Tom Lee, are still maintaining an optimistic outlook for Ethereum, with some predicting a $15K target in the future. Let’s explore why Ethereum made this recent move and what might come next for its price.

READ ALSO: Ethereum Sets New All-Time High as ETFs Hit Records

Ethereum’s $5K Peak and the Recent Drop

Ethereum’s recent price spike to nearly $5,000 was a significant milestone for the crypto asset, pushing it to its highest value in several months. This surge came amid institutional buys and growing interest from corporate buyers, as well as Ethereum’s leadership in the crypto market over Bitcoin.

However, as is often the case in the cryptocurrency market, Ethereum could not maintain the momentum. The price quickly dropped by 3.92% in the following hours, falling back to $4,422.

This move marked a rejection at the $5K level, causing disappointment among traders who expected a more sustained breakout.

Some analysts believe that Ethereum’s price was held back by a lack of liquidity at those higher levels, making it difficult for the asset to maintain its bullish trend.

Despite the price correction, Ethereum is still trading well above $4,000, suggesting that a consolidation phase might be underway before any major breakout.

Ethereum Whales: Pushing for a $15K Target

While Ethereum faced some downward pressure recently, whales (large institutional buyers and investors) are continuing to accumulate ETH, leading many analysts to predict a $15K price target for Ethereum in the near future.

Ethereum Institutional Buy-In

One of the key drivers behind this prediction is the increasing involvement of institutional investors. Unlike in previous market cycles, Ethereum has garnered significant attention from corporate accumulators, who view Ethereum as a long-term treasury asset.

These investors are staking their ETH for yield and treating it as a more stable store of value than ever before.

With institutional demand rising, Ethereum is becoming more than just a speculative asset. This has pushed Ethereum ETFs to see steady inflows, such as Fidelity’s FETH fund, which has been attracting significant investments.

Tom Lee’s Ethereum $15K Prediction

Tom Lee, a well-known cryptocurrency analyst, has been vocal about Ethereum’s future potential. He predicts that Ethereum could see $15,000 by the end of the year, citing the growing institutional adoption and Ethereum’s technological upgrades as key factors driving this bullish outlook.

Ethereum’s migration to Proof of Stake (PoS) and continued scalability improvements with layer 2 solutions add further support to the belief that Ethereum could reach new price highs.

READ ALSO: Ethereum Sees Biggest Search Spike on Google Since 2021 as ETH Nears ATH

Ethereum Breakout: What’s Next for ETH?

After the recent rejection at $5K, Ethereum is now at a critical juncture. With a $15K target on the horizon, traders are looking at key levels to determine the next potential breakout.

Ethereum’s Price Action in the Short Term

In the next 24 to 48 hours, Ethereum's price will likely remain volatile, especially given the recent rejection at $5K. Short-term traders should be on the lookout for Ethereum to test support levels between $4,300 and $4,500, with any break below those levels signalling further downside.

However, if Ethereum can regain momentum and push back towards $5K, we could see a renewed bullish trend.

For those holding Ethereum in the long term, this dip could present an opportunity to buy the dip, with expectations that the overall trend remains bullish in the months to come. Ethereum’s technological improvements, combined with increasing institutional support, are likely to propel the coin to new heights.

Conclusion

Ethereum’s recent rejection at $5K was disappointing for many traders, but it is far from the end of its bullish potential. Ethereum whales are continuing to accumulate, and institutional adoption is steadily increasing, both of which point to a bright future for the cryptocurrency.

Analysts, including Tom Lee, are predicting that Ethereum could hit $15K, thanks to growing demand and Ethereum’s technological advancements.

The short-term volatility should not distract from Ethereum’s long-term prospects. With Ethereum’s solid fundamentals and the rise of institutional buying, Ethereum remains one of the most promising cryptocurrencies for future growth.

Interested in trading Ethereum and staying up to date with the latest crypto trends? Visit Bitrue Exchange today to start trading, and check out Bitrue Blogs for more insights on Ethereum and other crypto assets!

FAQ

Why did Ethereum reject the $5K price?

Ethereum faced a lack of liquidity at the $5K level, leading to a pullback. Despite strong institutional support, the price could not maintain its bullish momentum.

What is the $15K target for Ethereum?

Prominent analysts, including Tom Lee, predict that Ethereum could reach $15K due to increasing institutional adoption and upcoming technological upgrades.

Are whales still buying Ethereum?

Yes, whales are actively accumulating Ethereum, which is contributing to the price action. Their interest signals strong demand for ETH in the long term.

What’s next for Ethereum’s price?

Ethereum's price is currently consolidating around $4,400. Traders should look for key support levels, and a breakout above $5K could signal further bullish movement.

Is Ethereum a good long-term investment?

Yes, with increasing institutional involvement and ongoing technological upgrades, Ethereum remains a strong long-term investment for those looking at crypto as a store of value.