Analyst: Ethereum withstands the pressure of Bitcoin's big dump, ETH is expected to reach 5000 USD.

Despite the recent pullback of Bitcoin, Ethereum (ETH) has shown remarkable resilience, remaining strong. Analysts point out that the market environment this week is favorable and may accelerate its rise towards $5,000. On Monday, Bitcoin pulled back to $117,000, causing altcoin prices to fall, while Ethereum rose against the trend, increasing nearly 3% from Tuesday's low of $3,716. This trend brings the second-largest Token by market capitalization close to the psychological barrier of $4,000 for the fourth time since March 2024.

As of today (30th), during the Asian session, ETH/BTC has risen over 39% in a single month, laying the foundation for the altcoin season.

(Source: Trading View)

Ethereum Surges Against the Trend: Multiple Bullish Fundamentals at Play

Cryptocurrency media Decrypt has learned that several bullish fundamentals are currently at play, supporting Ethereum's strong performance:

Approval of staking for US spot Ethereum ETFs: The potential approval of staking in US spot Ethereum ETFs will provide investors with passive income and increase the attractiveness of ETH ETFs.

Fund injection: Injecting excess funds into existing funds, demonstrating the market's confidence in Ethereum.

Acquisition of Digital Asset Vault: Increasing the acquisition of Ethereum by the digital asset vault reflects the institutions' long-term optimism towards ETH.

Regulatory Trend Changes: The regulatory tone under President Donald Trump has begun to change. The U.S. Securities and Exchange Commission (SEC) once firmly believed that cryptocurrency staking services violated securities laws, but now seems to be more open.

Sean Dawson, the research director of the options platform Derive, previously stated that he expects the price to reach an all-time high before Christmas this year.

Short-term Volatility and Long-term Bullish: Short Squeeze and Macroeconomic Catalysts

Despite the prevailing optimistic sentiment, Republic Technologies CEO Daniel Liu told Decrypt earlier on Wednesday that it is currently "unclear which retest will lead Bitcoin to break through $4,000 completely." He believes that "leverage demand around $3,500" and "net supply around $4,000" may lead to "range volatility in the short term."

However, Liu also emphasized that despite the short-term uncertainty, the market environment is ready for a "short squeeze." A series of "positive macroeconomic news" could disrupt the balance, catalyzing violent fluctuations and driving "Ethereum to break 5,000 dollars in the next month."

These catalysts include whether the Federal Reserve decides to keep interest rates stable on Wednesday, and whether market enthusiasm for risk assets continues, particularly led by the sentiment towards U.S. tech stocks and the artificial intelligence industry, which has seen a surge in valuations.

At the same time, since July 3, the US spot Ethereum ETF has seen inflows for 18 consecutive days, totaling $5.51 billion, leading some to believe that this further indicates institutional interest in the second largest cryptocurrency.

Conclusion:

Ethereum is rising against the pullback of Bitcoin, demonstrating its strong fundamentals and market confidence. Although it may face volatility in the short term, multiple bullish factors, particularly the potential approval of ETF staking and ongoing institutional capital inflows, suggest that Ethereum is likely to break through $5,000 in the next month.