Over the past week, spot ETH exchange-traded funds have seen record demand, including a $1 billion inflow in a single day. Meanwhile, recent policy changes—from the White House opening 401(k) plans to alternative assets, to the new stablecoin rules under the GENIUS Act—have provided institutional players with a clearer framework for participation.

According to a report by Offchain Labs, the combination of policy, product, and channel-building has created a sort of rulebook that brings innovation back onshore and gives ETH the ability to break through all-time highs—and then hold them.

Corporate treasury actions are also driving demand. Companies are increasingly diversifying their holdings by reducing Bitcoin's share in their digital asset portfolios. As the second-largest cryptocurrency, ETH is more often viewed not just as a speculative asset but as an important component of a diversified investment portfolio. Capital inflows from major players such as pension funds and hedge funds significantly boost market liquidity and reduce volatility, making ETH more attractive to conservative investors.

Will ETH rise to $6,000? Absolutely. The question is when. The more than 60% rally in recent months has clearly cooled some buying enthusiasm, especially as Ethereum approaches its all-time high. Breaking that level could trigger numerous margin calls, providing fresh fuel for growth.

Earlier on Wednesday, Standard Chartered analysts upgraded their year-end target for Ethereum to $7,500 from $4,000.

However, not all rally drivers were fundamental. CoinShares notes that while the Pectra upgrade in May had no direct impact on ETH's price, sentiment was so negative that sometimes even a slightly positive development is enough to break the deadlock. This shift in demand coincided with the passing of the GENIUS Act and renewed interest in Ethereum's role in stablecoins and tokenized real-world assets, where it holds about a 58% market share.

Even with the current rally, a significant portion of the market remains undervalued regarding Ethereum, and many are now buying, further supporting the price increase.

With ETH trading just below its record high and ETF flows still strong, the market seems to have adopted a wait-and-see approach, watching whether new inflows and policy momentum can push the second-largest cryptocurrency into uncharted territory.

Trading recommendations

Bitcoin

Buyers are now targeting a return to $122,500, which would open a direct path to $124,200, followed closely by $126,600. The most distant target is the high near $127,200, a break of which would confirm a stronger bull market. In case of a decline, buyers are expected around $120,700. A drop below this level could quickly send BTC towards $118,800, with the most distant downside target at $117,500.

Ethereum

A clear consolidation above $4,898 would open a direct path to $5,055. The most distant target is the high near $5,209, a break of which would signal a stronger bull market and increased buying interest. In case of a decline, buyers are expected around $4,700. A drop below this level could quickly send ETH towards $4,532, with the most distant downside target at $4,363.

What's on the chart

• The red lines represent support and resistance levels, where price is expected to either pause or react sharply.
• The green line shows the 50-day moving average.
• The blue line is the 100-day moving average.
• The lime line is the 200-day moving average.

Price testing or crossing any of these moving averages often either halts movement or injects fresh momentum into the market.