Ether (ETH) has staged a remarkable rally, surging to $3,600—marking a 47% gain in just one month. According to Felix Xu, a partner at crypto hedge fund ZX Squared Capital, a sharp pullback in the near term is highly unlikely.
Two Macro Factors Are Shielding Ether’s Rally
Xu pointed to rising inflows into U.S. spot Ether exchange-traded funds (ETFs) as the key driver behind ETH’s price momentum. On Wednesday alone, ETH ETFs saw $727 million in inflows—the highest single-day total since trading began in July 2024.
“Those coins are sent directly to cold custody wallets, meaning they’re effectively locked up and can’t be immediately resold,” Xu explained.
He also cited ongoing uncertainty around the U.S. Federal Reserve’s policy direction as another bullish force for ETH. While June’s Consumer Price Index (CPI) ticked higher, mounting pressure from former President Donald Trump on Fed Chair Jerome Powell to slash rates by as much as three percentage points is creating a more favorable backdrop for crypto.
“Unless both ETF inflows abruptly dry up and the Fed suddenly turns sharply hawkish, a full retracement like the 30% drop in October 2024 seems unlikely,” Xu said.
According to data from Nansen, Ether was trading at $3,609 at the time of publication, up 43% over the past 30 days.
$10,000 ETH by Year-End? Still a Stretch
Despite ETH’s strong performance, Xu remains cautious about forecasts calling for Ether to hit $10,000 by the end of the year.
“A $10K target implies a nearly 190% gain in just five months—something ETH has only pulled off twice: during the 2017 ICO craze and the 2020–2021 DeFi boom,” he noted.
Still, Xu didn’t completely rule out the possibility. If several bullish drivers align—including sustained ETF inflows, staking added to Ether ETFs, improving investor sentiment, and broader Ethereum network adoption—then a surprise run to $10,000 could be on the table.
“If restaking, booming layer-2 rollups, and new use cases continue to lock up more ETH and tighten supply, we could see ETH push well into five-digit territory,” Xu said.
Trevor Koverko, co-founder of Sapien, echoed this view, stating that while $10,000 ETH is an ambitious target, it’s not entirely out of reach.
“If favorable macro tailwinds persist, ETF adoption continues to grow, and Ethereum increasingly becomes the backbone of the next-generation financial system, we could see ETH reach new heights,” he said.
“ETH now feels less like a speculative bet and more like a programmable digital asset,” Koverko added.
Crypto trader Mikybull Crypto forecast that ETH could reach between $7,000 and $10,000, based on RSI indicators.
