Bitcoin
Ethereum Price Will Rise 500% This Cycle Amid ETF Approval: Crypto Expert
- The price of Ether will rise to between $15,000 and $22,500 this cycle, says Rachel Lin, CEO of SynFutures.
- She sees demand factors and a stagnation in new supply increasing the price of the currency.
- “Now that the ETH spot ETF has been approved, all indicators point to a huge bull run for ETH in the coming months,” she said.
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The positive verdict on the spot ether Last week’s ETFs will usher in a price rally, according to Rachel Lin, CEO of SynFutures.
According to comments published after the funds were approved on Thursday, 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 significant bullish events for Ethereum and the entire ecosystem,” Lin wrote, adding: “Even if the ETH ETF does not gain as much traction as Bitcoin in the first few weeks and months, it will likely still attract a surprisingly large amount of capital over the long term.”
A few reasons support his thesis, but generally it is that ethereum is a strong contender for bitcoin.
On the one hand, Ether offers an annual income through staking and is more than just a store of value asset. The Ethereum blockchain is exposed to technologies such as DeFi and NFTs, offering more functionality than Bitcoin.
“Bitcoin could become the Dow Jones of crypto ETFs, while Ethereum becomes its NASDAQ,” Lin said.
The rally will also result 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 crypto technology, but also a major shift in supply that occurred in September 2022:
“In the 20-month period before that date, the supply of ETH increased from 114 million to 120 million, a 5% increase. Today, 20 months since that date, the supply of ETH remains at the same 120 million,” said Lin. “Bitcoin, on the other hand, saw its supply increase by 2.9% during the same period.”
In that case, ether could reach the $22,500 target if bitcoin manages to rise to $150,000 this year, an estimate often published by Standard Chartered. The asset is currently trading for over $68,000.
“Overall, I know the market is bullish on Ethereum right now, but not enough. Now that the ETH spot ETF has been approved, all indicators point to a huge bull run for ETH in the coming months,” Lin wrote.
While it could still be weeks before the new ETFs begin trading, their approval has sparked a flurry of bullish enthusiasm, although few see prices reaching as high as Lin’s prediction. For example, Standard Chartered expects Ether to reach $8,000 by the end of this year.