According to Dr. Sean Dawson, the head of research at options DeFi protocol Derive, Ether’s value might reach an all-time high of $12,000 this year. This impressive increase of 257% from its current price could be driven by factors such as Donald Trump’s first year in office and a significant network update.
Dawson shared with CryptoMoon that if the “optimistic scenario” for Ether (ETH) holds true, it could reach $12,000 by year’s end. This optimism is based on Ethereum successfully implementing its Pectra update. Additionally, he mentioned that a favorable regulatory environment under the Trump administration would also contribute to its growth.
At the time of publication, CoinMarketCap shows Ether is trading at $3,361.
All eyes on Ethereum’s Pectra Upgrade
The anticipated Pectra update on Ethereum, set for release during the initial three months of 2025, is thought to enhance the network’s productivity and capacity to handle more transactions simultaneously.
According to Dawson, Ethereum needs to see increased use in everyday assets (RWAs), larger investments in ETFs, and growth in its practicality for new areas like Decentralized Personal Identification (DePIN) and Artificial Intelligence (AI) agents.
Matt Hougan, the head of research at Bitwise, has mentioned to CryptoMoon that “Ethereum and Base, a scalability solution for Ethereum, are the locations where numerous AI (Artificial Intelligence) agents are presently functioning.
According to Dawson, an expansion in second-layer solutions offering improved connectivity might lead to substantial advancements. Furthermore, a regulatory climate that’s favorable during the Trump administration could also contribute to this growth.
Options market “tells a more bullish story”
Since December 20th, Ethereum (ETH) appears to be holding steady near the $3,500 level. However, according to Dawson, the tale from the options and derivatives market is decidedly optimistic.
Derive.xyz shows a clear preference for call options, with twice as many call options being held (open interest) as put options. This trend indicates a very optimistic outlook among traders, as they appear to be heavily betting on price increases using these call options.
However, Dawson cautioned that in a “bearish case,” Ether’s price could drop below $2,000.
He mentioned that the Ether ETF might not draw institutional attention, potentially falling behind a thriving Solana ETF.
He pointed out that the dominance of Ether’s market share is facing competition from other first-layer blockchains, potentially presenting greater risks and potential rewards.
During an upward trending market, investors tend to favor investments that promise significant returns,” Dawson explained.
2024 saw a consistent growth in the count of long-term Ethereum (ETH) holders, contrasting with a decrease in Bitcoin (BTC) owners during the past year. This shift coincided with an escalating trust in Ethereum as the new year approached.
By December 30th, as reported by IntoTheBlock, the proportion of Ethereum holders who’ve kept their tokens for a prolonged period increased from 59% in January to 75% by the year-end of 2024.
This post serves as a source of broad knowledge rather than providing legal or financial guidance. The ideas, perspectives, and viewpoints presented belong solely to the author and may not align with or reflect those held by CryptoMoon.
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2025-01-08 09:10