Ethereum
Ethereum price to rise 500% this cycle thanks to ETF approval: crypto expert
- The price of ether will climb to between $15,000 and $22,500 this cycle, said Rachel Lin, CEO of SynFutures.
- She sees demand factors and stagnation in new supply that add upside potential to the coin’s prices.
- “Now that the ETH spot ETF is approved, all indicators point to a massive rise in ETH in the coming months,” she said.
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The positive verdict on the spot ether Last week, ETFs will trigger a price rally, according to Rachel Lin, CEO of SynFutures.
According to a commentary published Thursday after the funds were approved, Lin expects ether could reach between $15,000 and $22,500 this cycle. The high-end forecast implies a 503% gain from current price levels of around $3,890.
“The approval of the Ethereum ETF is one of the most important bullish events for Ethereum and the entire ecosystem,” Lin wrote, adding: “Even if the ETH ETF does not gain as much traction that bitcoin In the first few weeks and months, it is likely that in the long term it will still attract an incredibly large amount of capital. »
There are several reasons to support his thesis, but in general it is that Ethereum is a strong competitor against Bitcoin.
On the one hand, ether offers an annual return through staking and is more than just a store of value. The Ethereum blockchain is exposed to technologies such as DeFi and NFT, giving it more functionality than Bitcoin.
“Bitcoin could become the Dow Jones of crypto ETFs, while Ethereum becomes its NASDAQ,” Lin said.
The rise will also stem from a well-established correlation between bitcoin and ether prices, which is actually expected to tighten, Lin said. This is not only due to the growing demand for tech cryptocurrency, but also a major change in supply occurring in September 2022:
“In the 20 month period preceding this date, the supply of ETH increased from 114 million to 120 million, an increase of 5%. Today, 20 months since this date, the supply of ETH remains at the same level of 120 million,” Lin said. “Bitcoin, on the other hand, saw its supply increase by 2.9% during the same period.”
In this case, ether could reach the target of $22,500 if bitcoin manages to climb to $150,000 this year, a common estimate. published by Standard Chartered. The asset is currently trading at over $68,000.
“Overall, I know the market is bullish on Ethereum right now, but it’s not bullish enough. Now that the ETH spot ETF is approved, all indicators point to a massive rise in ETH in months to come,” Lin wrote.
While it could still be weeks before the new ETFs begin trading, their approval has sparked a wave of bullish enthusiasm, although few see prices reaching as high as Lin’s forecast. For example, Standard Chartered expects ether to reach $8,000 by the end of this year.