After a week of record-breaking gains, Bitcoin (BTC) has been led by Ethereum this week. ETH made a significant surge this week, reaching a 45% surge over the past month. ETH reached $3,670 with this attack, its highest level since January. While the rise in Ethereum and its leading altcoins is expected to continue, one analyst said that ETH is not expected to undergo a sharp correction anytime soon after its 43% surge in the past month. Felix Xu, partner at crypto hedge fund ZX Squared Capital, stated that Ethereum’s rapid rise could continue and that a sharp pullback is unlikely if two key macro conditions persist. At this point, the analyst noted that a rapid and sharp pullback is unlikely unless ETF inflows into Ethereum stop and the Fed makes policy changes. “All the hard data coming in this week argues against a quick reversal. Unless ETF inflows suddenly stop and the Fed simultaneously turns sharply hawkish, a sharp pullback like the 30% drop in October 2024 seems unlikely. The analyst emphasized that ETH held in spot ETH ETFs is locked in cold storage, reducing selling pressure and shrinking available supply. “Furthermore, this contraction in ETH supply, combined with dovish policy expectations from the Fed and strong investor sentiment, creates a low probability of any sudden trend reversal in ETH,” he said. Can Ethereum Reach $10,000? While the market generally expects Ethereum to reach $10,000 by the end of this year, the analyst approached this situation with caution. The analyst stated that $10,000 is ambitious but not impossible and added: “The $10,000 target implies a 190% move in just over five months. This is something ETH only achieved during the 2017 ICO craze and the 2020-21 DeFi boom. However, if multiple bullish catalysts work simultaneously and ETF inflows continue throughout the year, the possibility of a surprise surge towards $10,000 cannot be ruled out. *This is not investment advice. Continue Reading: Ethereum Turns Bullish, But What to Expect Next! A Sharp Correction or a Massive Rally Heading to the $10,000 Target? Analyst Answers!
