Ethereum Price Prediction: On-chain stablecoin usage surges 400% to over $580 billion, next target $5,000

Despite the recent pullback in Ethereum, data from Token Terminal shows that its on-chain stablecoin usage has surged by 400% in the past 30 days, reaching a historical high of $58.09 billion, with total transaction times exceeding 12.5 million. On-chain data reveals that this surge in stablecoin activity is mainly driven by whales, as large investors are buying low at the pullback to the $3,738 support level of ETH. This strong institutional adoption and influx of funds, combined with the surge in CME futures open interest, has led analysts to generally predict that the price of Ethereum will eventually break through the $5,000 mark.

Explosive Growth of On-Chain Activities in Ethereum: Institutional Adoption Accelerates

As the core of the crypto ecosystem, Ethereum's stablecoin market capitalization has surpassed $163 billion, proving its position as a mainstream settlement layer. The explosive growth in stablecoin usage over the past month, especially during the market pullback, strongly indicates the robustness of Ethereum's infrastructure and the high reliance of high-net-worth users on it.

• Stablecoin trading volume hits a new high: On-chain data from TheBlock shows that since the beginning of October, the total transaction volume of stablecoins on Ethereum has surpassed $1.91 trillion for the second time in history. Matt Sheffield, Chief Information Officer of Sharplink Gaming, pointed out that despite the market experiencing large-scale leverage cleanups and panic, the adoption rate of Ethereum continues to grow at an “astonishing pace.”
• Comparing the enormous potential of traditional finance: Sheffield further highlights the growth space of Ethereum by comparing it to the traditional financial system. He stated that the SWIFT system processes about $150 trillion in payments annually, which is equivalent to 20 times the current USDT trading volume on Ethereum. This indicates that Ethereum still has significant expansion potential in handling the largest institutional-level transactions globally.

Whale Takes Advantage of the Dip to Accumulate: Large Investors' Funds Continue to Flow into ETH

Recently, Ethereum has dropped 4.61% to a support level of $3,738 within 7 days, and on-chain data has captured a large number of whales (Large Investors) using stablecoins to buy low, which is a key signal indicating confidence in the long-term value of ETH.

• Massive Purchase by New Wallet: Data from Arkham Intelligence shows that a newly created wallet address 0x86Ed spent $32.47 million in the past 3 hours to purchase 8,491 ETH in one go. This transaction reflects the strategic large-scale accumulation by institutions or whales leveraging their financial advantages.
• Whales Return to Bullish After Liquidation: Also noteworthy is that the whale Machi Big Brother, who was previously liquidated, has deposited 284,000 USDC into the Hyperliquid platform to maintain his bullish position on ETH. This behavior indicates that even after experiencing volatility, large investors remain steadfast in their belief in Ethereum's upward trend.

Institutional Interest Surges: CME Futures and Technical Breakthrough Signals

CryptoQuant's data clearly confirms that institutional interest in Ethereum is rapidly heating up, primarily reflected in the significant increase in Ethereum futures open interest at the Chicago Mercantile Exchange (CME), which indicates that “smart money” is actively positioning itself in preparation for a major price breakout of ETH.

1. Key resistance level for ETH/BTC exchange rate: Tom Lee, Chief Information Officer of Fundstrat Capital, emphasized that if the ETH/BTC trading pair can break through the key resistance level of 0.087, Ethereum is expected to launch an attack towards $5,000. He believes this will be a structural transformation similar to the one that reshaped Wall Street in the 20th century.
2. Triple Bottom Bullish Confirmation: Cryptocurrency analysts point out that Ethereum has just confirmed a triple bottom pattern at the $3,600 price level, which is a strong bullish signal, providing technical support for a price attack on $5,000.
3. Long-term Potential: Chart expert Ash Crypto pointed out that Ethereum is forming a Wyckoff re-accumulation pattern, indicating that before the end of this bull market, the price target for ETH could point towards $8,000 to $10,000.

Technical Analysis Outlook: Elliott Waves and Fibonacci Targets

From a purely technical analysis perspective, the price movement of Ethereum (ETH/USD) depicts a clear upward path.

1. Elliott Wave Structure: The current chart shows that Ethereum may have completed the wave pullback of the Elliott Wave structure at (4), and is expected to initiate the wave rise pointing to higher price levels at (5).
2. Fibonacci Key Support: The price is currently around $3,887, slightly above the 0.618 Fibonacci retracement level ($3,781), which is the key support area for a bullish reversal.
3. Technical Prediction Target: As long as ETH can hold the 0.786 pullback level (3,640 USD) and avoid falling below the invalidation zone of 3,443 USD, the price target projected by the chart will be the 1.618 Fibonacci extension level of 5,125 USD. If the wave (5) fully unfolds, the price could even rise to 6,021 USD. Recovering the descending trend line will confirm the start of the next wave of impulsive upward movement.

Conclusion

The record surge in the usage of stablecoins on the Ethereum blockchain, along with the active buying low behavior of whales during the price pullback, is a strong testament to the extremely robust market fundamentals. Coupled with the explosion of CME futures open interest and bullish confirmations from technical indicators, the expectation of Ethereum breaking through $5,000 is shifting from mere fantasy to technical reality. For investors, the current consolidation phase resembles a preparation for the next round of strong upward movement, making it crucial to closely monitor the breakout signals of the ETH/BTC exchange rate.

Disclaimer: This article is for news information and does not constitute any investment advice. The cryptocurrency market is highly volatile, and investors should make cautious decisions.