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The majority of Ethereum investors remain divided on whether it will ever get to the $10,000 price tag. Some believe this is an impossibility while others believe it is a matter of time before its price gets to and surpasses it.
However, before the price can get to these heights, it must cross the $5,000 barrier.
Historical Ethereum prices
To understand why this will a key milestone, you need to take a step back and do a deep dive into its price movements in the past. The best that Ethereum has done so far is getting to $4,200. This was achieved around the May of 2021.
After hitting the all-time high, the price retraced soon after (a normal occurrence in this kind of market).
A price of $5,000 remains elusive as of now. Despite the recent price gains, the bull run seems to lack the right momentum to keep pushing it higher. Below are some of the reasons why a $5,000 price tag will be a key turning point for Ethereum’s price.
It is an all-time high
Hitting this price will mark a new all-time high for Ethereum. Since the previous high is slightly lower, if Ethereum manages to achieve this milestone, it could change the market sentiment helping bring in more demand to the coin.
An all-time high also shows a continuation of the bull trend. As you know, a market on a bull trend keeps posting higher highs. Hence, this will be a confirmation the trend is still triggering a buying rush.
Confirmation of Ethereum services demand
As a network, Ethereum offers various services on its blockchain network. Some of these include the;
- Development of Non-Fungible Tokens
- Dapps development (Decentralized applications)
These are some of the top products that Ethereum develops. Their uptake and usage are gaining demand as more users understand their benefits.
As value-added services, they are expected to become a key driver in the growth of Ethereum’s price.
Getting to the $5,000 mark will be a key indicator of their success. A key example is an NFT sector that is transacting huge amounts of money daily.
This will attract more investors and resources to facilitate their development to catch up with the demand
A message to competitors
Ethereum is facing aggressive competition mainly from the coins offering similar services. Due to the growth potential of the Ethereum model, a large number of crypto startups are trying to copy it. Due to this, they are starting to gain Ethereum’s market share.
Potential price growth to the $5,000 mark will indicate its resilience and competitive power to remain ahead in areas such as Decentralized finance and Non-fungible tokens.
Although the majority of investors see a $10,000 price mark as ideal for Ethereum, I believe the short-term priority should be getting to $5,000.
This will help swing the price upwards as it will help clarify doubts currently existing in the market.
The level of competition will keep growing as more currencies get better and consumers notice them.
However, I believe Ethereum will maintain its leadership position and it is just a matter of time before we get to the $5,000 mark.