Analysts: Ether Rally to $3,600 Supported by ETF Inflows & Fed Policy Outlook
Ether (ETH) climbed to an all-time high near $3,600 on Thursday following a bull run that saw prices jump over 43% in the past 30 days.
A hedge fund partner claimed Thursday the rally appears sustainable, citing several key factors.
ETF Flows & Fed Indecision Fuel Ether
Felix Xu, Partner at crypto hedge fund ZX Squared Capital, told Cointelegraph, “All the hard data arriving this week argues against a rapid reversal in Ether’s price.”
Xu specifically highlighted Tuesday’s record $727 million inflow into US spot Ether ETFs – the largest single-day inflow since their introduction in mid-2024.
He emphasized that capital in these ETFs enters long-term cold storage, effectively removing it from the immediate available market supply. Adding support, uncertainty surrounding Federal Reserve interest rate policy played a role.
“Macro conditions are mixed rather than toxic,” Xu noted. The ongoing pressure from President Donald Trump, advocating for substantial interest rate cuts, is viewed positively by Xu as it promotes a “dovish” environment favorable to risk assets.
“Unless both ETF inflows abruptly stall and the Fed turns sharply hawkish simultaneously, the probability of a full retracement resembling the October 2024 crash looks low.”
According to Nansen data, Ether was trading at $3,609 as reported, up nearly 43% over the past month.
Ethereum $10,000 Target: A Stretch or a Near-Term Possibility?
In contrast to the prevailing bullish sentiment, Xu cast doubt on a $10,000 price target by year-end.
“A $10K rally represents a 190% surge in just over five months. ETH has only reached or exceeded this level twice previously, during both a cryptocurrency initial coin offering (ICO) boomlet which fundamentally lacked real-world utility, and the preceding decentralized finance (DeFi) cycle.”
As such, Xu suggested the mid-to-long-term outlook remains contingent on observing whether staking mechanisms, layer-2 scalability solutions like rollups, and emerging applications effectively reduce Ether’s circulating supply and reinforce its network utility.
Meanwhile, Sapien co-founder Trevor Koverko offered slightly more optimistic, albeit still conditional, remarks on the potential near 10x increase.
Despite differing perspectives from market insiders, forecasts for Ether still push towards ambitious long-term price goals.
**Disclaimer:** This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
