Ethereum’s $4,700 Target: Can Institutional Giants Like BlackRock and Fidelity Ignite the Next Rally?

Ethereum gains bullish outlook as institutional interest and RWA growth fuel a $4,700 price target.
A physical Ethereum (ETH) coin stands reflected in front of the BlackRock logo. A physical Ethereum (ETH) coin stands reflected in front of the BlackRock logo.
A physical Ethereum (ETH) coin in front of the BlackRock logo. By

Institutional interest from financial giants like BlackRock and Fidelity is fueling a bullish outlook for Ethereum, with some analysts predicting a price target of $4,700. The blockchain is rapidly becoming a favored platform for tokenized real-world assets (RWAs), currently leading the sector with over $200 billion in value locked, signifying growing trust from traditional finance.

Institutional Adoption Drives RWA Growth

BlackRock’s BUIDL Fund, which tokenizes U.S. Treasury bonds directly on Ethereum, exemplifies this trend, allowing investors to earn yield through decentralized rails. Data from Token Terminal indicates that the total assets under management (AUM) for RWA products have surged by 2,000% since January 2024, underscoring increasing institutional engagement in tokenization.

Fidelity Digital Assets further reinforced this sentiment in an early October report, highlighting significant developments in stablecoins and tokenized RWAs beyond Bitcoin and Ethereum. Ethereum’s dominant position in this evolving market segment provides it with a unique advantage, reinforcing a positive outlook for its native asset.

Ethereum Price Action and Technical Outlook

Despite the strong institutional momentum, Ethereum’s price has recently faced increased volatility. The asset found support around the $3,200 level but has struggled to reclaim the $4,000 mark. It has also retested its 200-day exponential moving average (EMA) multiple times without achieving a sustained break above it.

A descending price channel has been forming since early October, which has prevented ETH from reaching the $5,000 level. Analysts suggest that a decisive breakout above $3,700 is critical to resume an upward trajectory towards the $4,700 target. The Relative Strength Index (RSI) recently issued a buy signal by crossing above its 14-day moving average, indicating potential positive momentum. The article posits that the conclusion of the U.S. government shutdown could serve as a catalyst for Ethereum to exit its current descending price channel.

Key Takeaways

The convergence of robust institutional adoption in the real-world asset space and emerging technical buy signals paints a potentially strong picture for Ethereum’s price. While current market volatility persists, the increasing integration of traditional finance with Ethereum’s ecosystem remains a significant long-term driver for its native asset.

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