Ethereum’s Trifecta: Three Forces That Could Propel ETH to $5K by 2025

Ethereum isn’t just surviving—it’s gearing up for a moonshot. Here’s what could send ETH soaring past $5,000 in 2025.

The Merge 2.0: With Proto-Danksharding now live, Ethereum’s gas fees are dropping faster than a trader’s confidence during a flash crash. Scalability upgrades could finally turn ’ETH killer’ narratives into relics.

Institutional On-Ramps: BlackRock’s ETH ETF approval wasn’t the endgame—it was the starting pistol. Wall Street’s playing catch-up, and their FOMO could flood the zone with institutional cash (just don’t ask about their 2018 ’blockchain, not Bitcoin’ phase).

DeFi’s Second Act: Real-world assets are colonizing Ethereum’s DeFi ecosystem. Tokenized Treasury bills? That’s not your anarcho-capitalist’s crypto—it’s the Trojan horse for mass adoption.

Will it hit $5K? Maybe. But one thing’s certain: the suits and the degens are finally reading from the same playbook—even if the suits still don’t understand half the words in it.

Is this positive reclaim a green light?

The Market Value to Realized Value (MVRV) ratio has crossed into positive momentum on the chart, indicating that buyers are stepping in.

Source: Glassnode

The positive momentum zone is marked by a period where the chart turns blue after exiting the negative momentum phase, marked by red.

This phase on the chart tends to signal the beginning of a forward price rally. With only a meager downturn in the last 24 hours, ETH showed the potential to begin its next upward move soon.

Source: Glassnode

The MVRV Deviation Price Band, which helps identify key support and resistance levels on the chart, shows that ETH could witness a free run-up to $3,100.

Another key factor that could contribute to a continued market rally is the liquidity inflow from traditional investors.

These market participants, known for large-volume trades, will drive liquidity into ETH through spot exchange-traded funds (ETFs).

Traditional finance players are also returning. ETH’s spot ETFs were valued at $9.50 billion, at press time.

Any increase WOULD imply rising investor activity and fresh liquidity inflows.

Source: CoinGlass

Moreover, the market’s Daily Netflow hit $77 million over the last two days. Sustained inflows at this level would offer strong support for another ETH leg up.

A rotation from Bitcoin to ETH

A critical factor in ETH’s potential to reach $5,000 is its ability to attract more liquidity than BTC.

This trend is already underway, as the ETH/BTC chart has surged for the past eight days, peaking at 41% with 493,960 ETH volume traded  

Source: TradingView

Based on the pattern shown on the chart, it’s likely that more liquidity will continue to flow into ETH than into Bitcoin during the upcoming trading sessions, which could further support its rally.

Is this a free run?

While Optimism remains high and the tendency for liquidity inflow persists, ETH could still face notable obstacles on its path upward.

The chart identifies three key resistance levels that could have this effect: $2,756.30, $3,389.86, and $4,093.57.

Source: TradingView

ETH is currently testing the first resistance level. If it breaks through, its momentum could be strong enough to carry it to the next level.

For now, overall market sentiment supports an ETH rally to $5,000, where it could establish a new all-time high.