Ethereum (ETH) could see its price surge to $12,000 by the end of 2025, representing a 257% increase from its current value, according to Dr. Sean Dawson, Head of Research at DeFi protocol Derive. This optimistic outlook is fueled by Ethereum’s anticipated Pectra network upgrade and a favorable regulatory environment under Donald Trump’s first year in office.
Speaking to Cointelegraph, Dawson highlighted that the “bullish case” for Ether hinges on the successful launch of Ethereum’s Pectra update, which is expected to enhance scalability and efficiency. He also pointed to a “regulatory-friendly environment” that could encourage institutional adoption, further boosting the price of Ether.
At the time of publication, Ethereum is trading at approximately $3,361. The Pectra upgrade, slated for release in the first quarter of 2025, is anticipated to improve Ethereum’s functionality in emerging sectors, including decentralized physical infrastructure networks (DePIN) and AI. Dawson emphasized that achieving broader adoption of Ethereum for real-world assets (RWAs) and significant inflows into exchange-traded funds (ETFs) would play a crucial role in the network’s success.
Additionally, Dawson noted that Ethereum’s growing layer-2 ecosystem, particularly through networks like Base, is fueling Ether’s bullish potential. Matt Hougan, Bitwise’s Head of Research, shared similar sentiments, revealing that Ethereum and Base are key platforms for many AI agents.
While the options market currently reflects a bullish sentiment for ETH, with a significant skew towards call options, Dawson cautioned that Ether’s price could fall below $2,000 if Ethereum fails to attract institutional interest, especially if competitors like Solana gain ground. Despite these risks, Dawson emphasized the increasing confidence in Ethereum, noting that the percentage of long-term Ether holders has risen from 59% to 75% over the course of 2024.
As the year progresses, all eyes will be on Ethereum’s Pectra upgrade and its ability to leverage growing institutional interest for sustained growth.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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