Analysts at the on-chain intelligence platform CryptoQuant have identified network dynamics that could push ether (ETH) above $5,000 in the coming weeks.

Per a weekly report, the Ethereum network is seeing renewed demand and increased network activity. Valuation metrics suggest the second-largest cryptocurrency will trade above $5,000 if supply and demand dynamics continue. The asset was worth $3,910 at press time.

ETH Sees Rising Demand

Gauging ether’s realized price, the average one at which holders bought their ETH, $5,200, is the current upper limit for the crypto asset. Although this point marked the ETH top for the 2021 bull run, the price band will continue to rise as new market participants buy ETH at higher valuations.

The renewed demand for ETH can be seen in the holdings of spot Ethereum exchange-traded funds (ETFs), which hit a new high of 3.41 million coins. These products have witnessed a significant increase in their holdings since their launch in July 2024, and this growth marks a notable recovery from a low of  2.716 million ETH in September.

CryptoQuant noted that with market participants expressing renewed confidence in ETH as an investment vehicle, sustained buying pressure from Ethereum ETFs could contribute to upward price momentum.

Supply Dynamics Flash Positive Signal

The cryptocurrency’s supply dynamics have been positive, especially since the implementation of the EIP-1559 upgrade, which enables the burning of a portion of transaction fees and reduces net issuance. Effects of the Dencun upgrade led to the total supply of ETH growing to its highest level since April 2023; however, the amount of ETH burned via fees began to increase in September.

With the amount of ETH burned through transaction fees increasing from 80 ETH on August 30 to 2,700 as of today, the pa