3 reasons why Ethereum price could rally to $5,000 in 2025
Ether (ETH) rose 43.6% from May 7 to May 14, reaching $2,600 but still below its 2021 peak of $4,868. Analysts suggest this bullish trend may lead to a near-term rally towards $5,000, though catalysts for a new all-time high in 2025 are uncertain due to increasing competition. Ether is viewed as a strong candidate for institutional diversification, yet recent data shows a lack of institutional interest, with Ether ETFs experiencing $4 million in net outflows and a market size significantly smaller than Bitcoin's. The 'Pectra' upgrade has improved scalability, leading to a 23% increase in layer-2 network activity. AI adoption could drive demand for ETH, with potential for smart contract activity to increase significantly. The path to a $5,000 price remains uncertain, contingent on regulatory changes and institutional interest.
