The ether price surged to $3,600 on Thursday, and as long as two significant macro factors hold, a drop seems unlikely.
“The data we’ve seen this week contradicts any rapid turnaround,” said Felix Xu from ZX Squared Capital, speaking with Cointelegraph.
ETFs Thriving, Uncertainty Boosts Ether
Xu highlighted a rise in investment into US spot ether (ETH) exchange-traded funds (ETFs) as a major reason for Ether’s ongoing price ascent.
“These assets are secured in cold storage and can’t be quickly resold,” he noted. He also mentioned uncertainty surrounding the US Federal Reserve as another factor contributing to Ether’s positive momentum.
“The macroeconomic environment is mixed, not overly negative,” he added. Xu pointed out that while the June Consumer Price Index (CPI) is “quite high,” continuous pressure from President Trump on Federal Reserve Chairman Jerome Powell has positively influenced the crypto market.
“Trump’s calls for the Fed to cut rates by up to three percentage points remind us that policy risk could sway investor behavior towards riskier assets,” he explained.
“Unless both ETFs see a sharp decline and the Fed becomes markedly hawkish simultaneously, a significant drop like the one we saw in October 2024 seems unlikely.”
Ether rose by 7.55% in the last 24 hours. At the time of publication, it was trading at $3,609, marking a 43% increase over the past month.
However, Xu mentions there’s a slight chance Ether could hit $10,000 by year’s end, despite contrary opinions from various analysts.
“Reaching $10,000 would require a 190% increase in just over five months. We’ve only seen ETH reach such heights during the ICO boom and the DeFi explosion in 2020-21,” he remarked.
Is $10,000 Ether Realistic?
“That’s quite a stretch,” he admitted, but as long as ETF investments keep flowing, staking becomes integral to those ETFs, and Ethereum sees broader acceptance, the prospects remain open.
“Fostering real-world applications for Ethereum: creating new applications, decreasing ETH circulation, and tightening supply.”
“If any of these factors falter, the rally could struggle to reach that five-digit mark, but if they all align, we can’t rule out a surprise push to $10,000,” he added.
Sharing similar thoughts, Trevor Koverko, co-founder of Sapien, told Cointelegraph that while a $10,000 Ether price is speculative, it’s not impossible.
“It’s an ambitious target, but with sustained positive macro trends, broader ETF acceptance, and a growing narrative centered around Ethereum, it’s plausible that ETH could inch closer to that $10,000 mark,” Koverko noted.
“Currently, ETH doesn’t feel like just a speculative play on programmable digital assets,” he concluded.
Cointelegraph recently mentioned that crypto trader Mikybull predicts Ether could exceed values between $7,000 and $10,000 based on the RSI index.
This article does not offer investment advice or recommendations. All investment and trading activities involve risk, and readers should conduct their own research before making decisions.
