Ethereum’s price could rise to $12,000 this year, driven by a combination of factors including a supportive U.S. administration, a pivotal network update, increased adoption, and ETF growth, according to Dr. Sean Dawson from Derive’s research team. Dawson asserts that Ethereum’s Pectra upgrade is crucial, potentially enhancing network efficiency and scalability. He believes a favorable regulatory landscape under Trump’s presidency would further propel Ether’s growth.
As Ethereum trades at $3,363, there is optimism for broader integration with real-world assets and greater involvement in exchange-traded funds (ETFs). Additionally, innovative growth in sectors like decentralized physical infrastructure networks (DePIN) and artificial intelligence agents is anticipated.
The options market reflects this bullish sentiment, showcasing a significant bias towards call options, indicating traders’ optimistic outlook. However, Dawson warns of a potential dip below $2,000 if institutional interest in spot Ether ETFs wanes, particularly if faced with competition from successful alternatives like a Solana ETF.
The landscape for Ethereum and broader cryptocurrencies reveals a growing number of long-term holders, with Ether seeing substantial support in 2024. This comes as interest in Bitcoin holdings declined, illustrating shifting confidence and positioning Ethereum for further gains despite emerging competition from other blockchain networks.
