Ether's $5K Milestone Gains Traction Despite Recent Pullback

Ethereum's native token ETH shows strong bullish sentiment among traders, with prediction markets indicating a 64% probability of reaching $5,000 before August concludes. Currently trading around $4,600, the cryptocurrency faces mixed signals following disappointing U.S. inflation data that triggered a market-wide correction.

Prediction Markets Paint Optimistic Picture

Decentralized platform Polymarket reveals traders are placing increasingly confident bets on ETH's upward trajectory:

• 65% odds for $4,800 price target

• 31% probability of surpassing $5,400

• 18% chance for $5,800 breakthrough

【Notably】, the platform shows an 87% likelihood of ETH establishing new all-time highs this month, mirroring 92% confidence levels on competitor platform Kalshi.

Technical Indicators Suggest Critical Juncture

Market analysts highlight key price levels that could determine ETH's near-term direction:

——"The $4,631 level must hold as support to confirm continuation into price discovery mode," warns prominent trader Rekt Capital. A failure to maintain this position could trigger a retracement toward the $4,000-$4,400 demand zone——

Block_Diversity v.8's chart analysis suggests potential retracement scenarios before renewed bullish momentum. The +1 standard deviation "Active Realized Price" band near $4,700 emerges as particularly significant, having historically acted as strong resistance.

Institutional Interest Fuels Long-Term Optimism

Behind the prediction market activity lies growing institutional participation, with Ethereum ETFs recording substantial inflows. This fundamental support combines with technical patterns to create what analysts describe as "the most favorable ETH market structure since 2021."

As of press time, ETH maintains its position as the second-largest cryptocurrency by market capitalization, with its 30-day volatility index sitting at 82%—suggesting both substantial risk and reward potential for short-term traders.

——Market participants await clearer signals on macroeconomic conditions and Ethereum network activity to confirm whether the $5,000 prediction will materialize before month's end——