Ethereum News: Ethereum Rally Gains Momentum, On-Chain Growth and Investor Optimism Pave Path to $5K ETH

Key Takeaways:Ethereum network activity surged 63% in 30 days, boosting bullish momentum.Futures open interest sits at $69B, showing strong leveraged demand.ETH price hit $4,701, its highest in nearly 4 years, liquidating $351M in bearish bets.Investor risk appetite is rising, fueled by Fed signals of potential rate cuts.Ethereum Nears $5,000 After 4-Year HighEthereum’s native token ETH rallied to $4,701 on Friday, its highest level since November 2021. The surge liquidated more than $351 million in bearish futures positions, underscoring renewed bullish dominance in the market.The rally comes amid improving macro conditions. U.S. Federal Reserve Chair Jerome Powell hinted at a more accommodative monetary stance at the Jackson Hole Economic Symposium, boosting investor confidence in risk assets.With ETH trading above $4,800 at press time, analysts say the long-awaited breakout to $5,000 could be imminent.Nasdaq Rally Signals Risk-On ShiftThe Nasdaq index gained 1.8%, reinforcing the trend of investors moving away from bonds and back into equities and digital assets. Ethereum has already climbed 33% in the last 30 days, outpacing Bitcoin and most altcoins.Powell’s remarks further shifted expectations: bond traders now see a 45% probability of U.S. rates falling to 3.5% or below by March 2026, compared to 37% last week. Lower borrowing costs reduce financial stress and generally boost liquidity for risk assets like ETH.On-Chain Data Confirms Ethereum’s StrengthEthereum’s network activity is accelerating rapidly:Transactions: +63% in 30 days.Active addresses: +26% in the same period.By comparison, Solana saw just a 2% rise in transactions, with active addresses down 14%. BNB Chain registered a 50% drop in transaction count.This divergence underscores Ethereum’s dominance as the primary smart contract platform powering DeFi, NFTs, and Web3 growth.Futures Market Signals ResilienceDespite liquidations, ETH’s open interest remains steady at 14.4M ETH (~$69B), reflecting continued appetite for leveraged exposure. Futures premiums have risen to 7% annualized, up from 4% earlier in the week, signaling healthy optimism without overheating.According to analyst JA_Maartun, Ethereum futures buyers haven’t shown this level of aggressiveness in over a month — a clear sign of building conviction behind the rally.Can ETH Finally Break $5K?While BNB and Tron already trade above their 2021 highs, Ethereum still trails its previous record of $4,868. That gap remains a psychological hurdle, but current metrics suggest ETH may be ready to close it in the coming days.If Ethereum convincingly breaks above $5,000, analysts expect momentum could carry the price higher into price discovery territory, with institutional ETF flows and on-chain activity reinforcing the trend.Ethereum’s rally is being powered by booming network activity, robust futures demand, and a macro-driven shift toward risk assets. With ETH just shy of its all-time high, the stage is set for a potential breakout to $5,000 and beyoond.