Ethereum Price Aims for $5k Next As BitMine Unveils $24B Deal to Buy More ETH

Ethereum (ETH) has experienced a rapid price surge, exceeding many traders' expectations. The large-cap altcoin, boasting a fully diluted valuation of approximately $542 billion, climbed over 4.4 percent in the last 24 hours, reaching a multi-year high of around $4,500 – a level not seen since December 2021.

This significant bullish breakout on Tuesday triggered the liquidation of over $157 million, with short traders bearing the brunt at $102 million. Consequently, the ongoing short squeeze has amplified the likelihood of Ether reaching its all-time high (ATH) before the end of August.

Institutional Investors Inject Massive Capital into Ethereum

Recent weeks have witnessed substantial cash inflows into the Ethereum network. U.S. spot Ether ETFs, for example, attracted a remarkable $1.02 billion in net cash inflow on Monday, spearheaded by BlackRock’s ETHA and Fidelity’s FBTC.

Furthermore, companies establishing Ethereum treasuries have significantly increased their activity. BitMine, for instance, expanded its at-the-market equity program by $20 billion, bringing it to approximately $24 billion, specifically to acquire more Ether.

SharpLink Gaming purchased 5,226 Ether on Tuesday, increasing its total holdings to 604,026 ETH, valued at over $2.6 billion. Additionally, a newly created wallet withdrew 23,365 ETH from Kraken, equivalent to roughly $104 million.

Is This the Beginning of Altseason, or Simply an ETH Season?

With Ether's price now less than 10 percent away from its all-time high, a renewed wave of speculative FOMO (fear of missing out) traders has heightened the possibility of an altseason. While Bitcoin price has remained below a key resistance level around $120k, major altcoins like Chainlink (LINK), Dogecoin (DOGE), and Solana (SOL) have displayed a midterm bullish outlook.

However, crypto analyst Benjamin Cowen suggests that the current bullish trend is primarily an Ether season, rather than a broader altseason. Nevertheless, the anticipated Federal Reserve rate cut in September could potentially spark a more widespread crypto bull rally.