Galaxy Digital CEO Michael Novogratz sees ETH breaking $4,000 soon, with other analysts projecting even higher targets. Ethereum ETFs also recently outpaced Bitcoin ETFs in inflows for six consecutive days, led by BlackRock’s ETHA and Fidelity’s FETH. Additionally, on-chain data shows lower ETH selling pressure, while technical levels suggest $4,500 as a key resistance point. With ETH outperforming BTC by over 36% in the past month, Ethereum could continue leading the market in the coming months.
Ethereum Set to Outperform Bitcoin
Institutional interest in Ethereum (ETH) is accelerating at a remarkable pace, and Galaxy Digital CEO Michael Novogratz believes it could propel ETH to outperform Bitcoin (BTC) over the next three to six months. Speaking to CNBC, Novogratz pointed to a tightening ETH supply and strong market momentum, and suggested that a breakout past $4,000 could lead Ethereum into a phase of price discovery.
With Ethereum currently hovering around $3,641, that target reflects a modest 8+% climb. Novogratz firmly believes that it's well within reach, saying, “We feel kind of destined to at least knock on the $4,000 ceiling a few times.”
ETH price action over the past month (Source: CoinMarketCap)
Backing Novogratz’s optimism are major corporate purchases of ETH. BitMine Immersion Technologies recently disclosed holdings of 566,776 ETH valued at roughly $2.03 billion, while Sharplink Gaming reported 360,807 ETH worth around $1.29 billion. Another firm, Ether Machine, is preparing to list on Nasdaq under the ticker “ETHM,” with more than 400,000 ETH — about $1.5 billion — under management at launch.
At the same time, Ethereum’s performance relative to Bitcoin has surged by over 36% in the past 30 days, according to TradingView data. Despite this, Novogratz is also bullish on Bitcoin, and suggested that a $150,000 price point is achievable as long as macroeconomic conditions remain favorable. He did warn, however, that a shift in US monetary policy sentiment, especially if President Donald Trump reverses his stance on rate cuts, could alter the bullish trajectory.
BitMEX co-founder Arthur Hayes took an even more optimistic stance on Ethereum by projecting a potential rally to $10,000 by the end of the year. Meanwhile, analysts at Bitfinex have pegged $136,000 as the next key upside target for Bitcoin, but warned that such levels typically coincide with market euphoria and could mark a temporary top.
Overall, the narrative surrounding Ethereum is gaining steam, fueled by strategic accumulation from institutional players and a compelling macro backdrop. While both Ethereum and Bitcoin are poised for potential gains, ETH’s tightening supply and growing adoption may give it the upper hand over the coming months.
ETH ETFs Dominate
The surge in institutional interest in Ethereum became even more evident after spot Ether exchange-traded funds (ETFs) attracted more capital than their Bitcoin counterparts over the past six trading days. According to data from Farside Investors, Ethereum ETFs recorded close to $2.4 billion in net inflows during this period, overshadowing the $827 million seen by spot Bitcoin ETFs. Interestingly, Ethereum ETFs outperformed Bitcoin ETFs in daily inflows for each of the six days.
Ethereum ETF flows (Source: Farside Investors)
BlackRock’s iShares Ethereum ETF (ETHA) stepped up as the dominant player, pulling in $1.79 billion. This is about 75% of the total inflows. ETHA also recently achieved a major milestone by becoming the third-fastest ETF to reach $10 billion in assets under management, doing so in just 251 trading days.
Meanwhile, Fidelity’s Ethereum Fund (FETH) set a new single-day inflow record on Thursday, receiving $210 million. This allowed it to surpass its previous high from December of 2024.
Market analysts from Swissblock Research anticipate this momentum to continue in Ethereum’s favor, and suggested that ETH is beginning to take the lead as the crypto cycle enters its next phase.
ETH Gathers Even More Strength
Ethereum continues to show signs of strength relative to Bitcoin, with on-chain data also suggesting that ETH faces lower selling pressure compared to BTC. According to CryptoQuant, the ETH/BTC exchange inflows ratio is still far from historically high levels, indicating fewer ETH tokens are being moved to exchanges and suggesting reduced sell-side activity.
This trend supports the potential for continued ETH outperformance. Additionally, the ETH/BTC ETF holding ratio climbed from 0.02 in May to 0.12. This could mean that there is growing investor preference for Ethereum exposure over Bitcoin.
ETH/BTC exchange inflows ratio. (Source: CryptoQuant)
Glassnode’s cost basis model pointed out some key price levels to monitor for Ether. On the downside, support lies between $2,000 and $3,000, with specific levels at $2,100, $2,500, and $3,000. These reflect the realized price, true market mean, and active realized price respectively, offering strong support in the event of a pullback. On the upside, resistance sits at $4,500, a level that historically signals market euphoria and potential overextension.
A decisive break above $3,860 is needed to fuel the next leg of the rally toward $4,000 and beyond.
