Since reaching its peak of $4,878 in 2021, Ethereum (ETH) has not been able to approach this level again. However, market dynamics, increasing interest from institutional investors, and scandals in rival blockchain networks could herald a new price surge for Ethereum. Analysts predict that ETH’s price could at least double by 2025.

The moves of major players in the crypto market are closely monitored. Significant institutional purchases of Ethereum (ETH) have been notable recently. World Liberty Financial, reportedly affiliated with Donald Trump, aggressively increased its ETH investments to accumulate over $200 million. Blockchain data shows that the fund accelerated its ETH purchases starting from January 2025, continuing until February. Despite currently having an unrealized loss of around $52 million, the fund has not abandoned its ETH accumulation strategy.

Apart from World Liberty Financial, the interest of giant investment firms like BlackRock and Fidelity in Ethereum ETFs is increasing. BlackRock’s iShares Ethereum Trust, with a market value of $3.7 billion, is the largest ETH ETF. It is followed by Grayscale with a market value of $3.5 billion and Fidelity with a market value of $1.1 billion. According to CoinGlass data, fund inflows into Ethereum ETFs have been gaining momentum since October 2024, reaching $428 million on December 5, 2024, and $307 million on February 4, 2025. These significant investments underscore the confidence in ETH’s long-term potential. Solana scandals are increasing interest in Ethereum.

SOLANA SCANDALS BOOST INTEREST IN ETH Solana, one of Ethereum’s major competitors, has recently been associated with meme coin scandals. Token launches, led by the Pump.fun platform, especially drew attention following the LIBRA scandal. The token named LIBRA, reportedly created to support Argentina’s economic reforms, collapsed after allegations of being linked to fraudulent activities. Problems on the Pump.fun platform have raised regulatory and ethical discussions relating to the Solana ecosystem, positioning Ethereum as a more reliable blockchain as per some opinions. According to Artemis data, Ethereum has been the biggest capital flow among all blockchains in the last seven days with a net inflow of $452 million, while Solana dropped to the fourth place with a $82.9 million inflow. Stabolut CEO Eneko Knörr states that Ethereum will continue to be the preferred chain for institutional investors. Knörr comments, “While Ethereum competes with Solana and new-generation blockchain projects, it stands out as the most reliable and sustainable option for institutional investors.” COULD $5,000 LEVEL BE SURPASSED? Even though Bitcoin (BTC) has managed to surpass all-time high levels, Ethereum has not yet shown a steady rise above $4,000. However, experts believe that due to strong institutional demand and increasing adoption rates, the price could double by 2025.

Zekret CEO Dmitrij Radin draws attention to Ethereum’s low volatility and long-term investor interest, stating, “ETH’s lower volatility compared to BTC makes it attractive to investors. We see increasing support for ETH on social media and jokes about it turning into a stablecoin. All these signs point to a strong buying interest.” On the other hand, Ethereum still faces challenges. Disagreements between Ethereum’s founder Vitalik Buterin and the Ethereum Foundation have raised some concerns within the developer community. Discussions on X (formerly known as Twitter) have highlighted the need for a stronger leadership structure for the network.

However, technical developments within the Ethereum ecosystem are expected to have a positive impact on the price. Thinh Porrmann, co-founder of Grindery, mentions that Ethereum’s upcoming Pecora upgrade, especially with the EIP-7702 update, will enhance wallet functionality.

Another factor closely watched by the market is Ethereum’s scalability issues. Solana and other new-generation blockchain projects consider Ethereum requiring Layer 2 solutions as a competitive disadvantage. Nevertheless, Ethereum’s dominance in decentralized finance (DeFi) and the size of its developer ecosystem are fundamental elements that give it an advantage over its competitors.