Ethereum Nears Record Transactions as Bullish Signals Point to $5K Rally

Ethereum (ETH) is making headlines once again after recording 1.87 million daily transactions, nearly surpassing its all-time high set in January 2024.

The surge reflects renewed confidence in the Ethereum network, driven by record stablecoin activity, increasing institutional adoption, and recent regulatory developments that are reshaping the crypto landscape.

Stablecoin Boom and Regulatory Clarity Fuel On-Chain Growth

According to blockchain data aggregators like Nansen and DappRadar, the massive uptick in Ethereum transactions is primarily fueled by USDC and USDT transfers, as well as DeFi trading on Uniswap. These stablecoins accounted for over $50 billion in weekly volume, underscoring Ethereum’s central role in decentralized finance and tokenized asset flows.

This on-chain explosion coincides with the recent passage of the GENIUS Act in the U.S., which provides the first federal regulatory framework for stablecoins.

The act’s approval has catalyzed market confidence and accelerated institutional entry into Ethereum-based ecosystems. Notably, Visa, JPMorgan, and Citi have all expanded their pilot programs for Ethereum-compatible stablecoin applications.

ETH Eyes $5,000 as Bull Pennant Formation Gains Attention

Technical analysts are now closely watching Ethereum’s chart as it forms a classic bull pennant, a bullish continuation pattern that historically precedes significant price surges. Titans of Crypto and other prominent traders suggest a confirmed breakout could send ETH soaring to $5,000, a milestone not seen since its previous bull run.

Adding fuel to this outlook, Ethereum has recently flashed a “golden cross”, where the 20-day and 50-day moving averages crossed above the 200-day line, similar to the setup seen in the 2020–2021 bull market. Analysts also highlight Ethereum’s current “risk score” near 49, a historically bullish signal that indicates the market may be entering a pre-bull phase.

Institutional Flows and Market Dynamics Drive Ethereum’s Rise

Despite a $465 million outflow from Ethereum ETFs earlier this month, ETH remains resilient above the $3,700 level, backed by surging spot ETF inflows and corporate treasury allocations. Ethereum has now achieved 19 consecutive days of positive net inflows into spot ETFs, while corporate ETH holdings have climbed 127.7% to over 2.7 million ETH.

This growing institutional footprint is further cemented by Ethereum’s unique position as a foundational blockchain for DeFi, tokenization, and stablecoin infrastructure.

While Solana and other high-throughput blockchains pose competitive threats, Ethereum’s first-mover advantage, scalability upgrades, and regulatory tailwinds give it a clear edge in the long-term race.

As macroeconomic conditions evolve and interest in digital assets deepens, Ethereum’s momentum appears far from over—especially with a potential $5K breakout on the horizon.