Tom Lee, CEO of BitMine Research, expects the price of Ether to reach $5,000 by the end of the year. BitMine has amassed over 6 million ETH in its treasury reserves, highlighting the significance of this investment. BMNR shares have risen more than 70% for the quarter. Amid these developments, there is growing optimism about ETH. According to AMBCrypto, ETH long positions on Bitfinex have reached a four-year high, and the long-to-short ratio hit a weekly peak of 1.12, indicating a bullish sentiment.
Another trader opened a long position of $43.4 million using 25x leverage, entering at around $2,500. Technically, with ETH rising from the trader's entry price of $2,543 to $2,560, this position has an unrealized profit of approximately $289,800, which is about a 16.7% return on the estimated margin deposit at 25x leverage. However, forecasts of $5,000 per ETH face reality, as in the past week, funds related to spot ETH ETFs reported a net outflow of over $542 million, marking the worst weekly performance since January. There are also concerns about sales from the Ethereum Foundation itself, which transferred 4,393 ETH worth $11.13 million to the Kraken platform a few hours ago.
The key point is that these wallets received 59,751 ETH from the Foundation about 10 years ago when ETH was trading at $0.90. Given the market volatility and increasing pressure from institutional investors, achieving the $5,000 target for ETH is becoming less likely under current market conditions. Growing FOMO in Ether derivatives could lead to additional price pressure and complicate the achievement of optimistic forecasts.
This material is prepared solely for informational purposes and does not constitute financial advice or a recommendation.
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