Growing institutional adoption is bringing new investor groups into Ethereum, with stablecoins like USDC and Ethena being Ethereum-based tokens. Ethereum saw a 14.1% drop from a fresh all-time high on Aug. 24 but has since risen 1.8%. At $4,433 per coin, investors are eyeing the $4,500 mark, anticipating both rapid climbs and drops due to extreme volatility.

Ethereum’s price is 3.8% below $4,500, with bullish catalysts like spot Ethereum ETFs and rising interest from new investor groups supporting its rise. Crypto-based apps and Web3 concepts are gaining traction, while stablecoins like USDC and Ethena are actually Ethereum-based ERC-20 tokens, showcasing Ethereum’s utility.

While Ethereum’s price could quickly surpass $4,500, its extreme volatility makes timing uncertain. With spot Ethereum ETFs having beta values of 4.8, investors should expect rapid price movements. In the long term, Ethereum’s potential remains strong, with real-world app activity and rising interest from new investor groups driving its value over time.

The Motley Fool Stock Advisor team did not identify Ethereum as one of the 10 best stocks to buy now, focusing on other options with potential for high returns. The history of Stock Advisor’s recommendations shows significant returns on past picks, highlighting the potential for substantial gains by investing in recommended stocks. Consider joining Stock Advisor for access to the latest top 10 list.

Read more at Nasdaq: Ethereum (ETH) Is Rallying, But Can It Hit $4,500?