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Ethereum has recorded an impressive 47% gain in just one month, soaring to around $3,600. According to Felix Xu, partner at crypto hedge fund ZX Squared Capital, there are no strong signals suggesting a rapid reversal of this rally. He points to a combination of macroeconomic factors and increasing demand from institutional investors as reasons why Ether’s bullish momentum may continue in the short to medium term.
One of the main drivers behind Ethereum’s surge is the massive inflow into U.S.-based spot Ether exchange-traded funds (ETFs). On a single day—Wednesday—these ETFs saw $727 million in inflows, marking the highest one-day total since they began trading in July 2024. These large volumes of Ether being bought for ETFs are typically placed in cold storage, meaning they are not available for immediate trading. This effectively reduces circulating supply and adds pressure on prices to move upward.
Beyond ETF activity, ongoing uncertainty around U.S. Federal Reserve policy is also playing a key role in supporting Ethereum’s price. Although inflation data for June showed a slight uptick, pressure from U.S. President Donald Trump on Federal Reserve Chair Jerome Powell to reduce interest rates has increased. Trump has been vocal about pushing for aggressive rate cuts—by as much as three percentage points. This dovish stance from policymakers tends to favor risk-on assets like cryptocurrencies, giving further fuel to Ethereum’s rally.
Felix Xu emphasizes that unless ETF inflows suddenly stop and the Fed adopts a much more hawkish approach, a correction on the scale of the 30% drop seen in October 2024 is unlikely. This view is supported by Ethereum’s price strength, which has shown a 7.5% gain in the last 24 hours alone. At the time of writing, Ether is trading around $3,609 and is up more than 43% over the last 30 days.
Despite the bullish momentum, Xu remains cautious about overly optimistic price targets in the short term. Some market analysts have predicted that Ethereum could reach $10,000 by the end of 2025. Xu, however, considers this target to be a stretch. Reaching $10,000 would mean a 190% gain in just over five months—something Ethereum has achieved only twice in its history: during the ICO boom of 2017 and the DeFi-driven rally of 2020–21. Achieving such a move again would require several favorable conditions to align.
Xu explains that in order for Ethereum to come close to $10,000, continued strong inflows into ETFs would be essential. In addition, adding staking options to Ether ETFs, improved investor sentiment, and increased adoption of Ethereum’s network infrastructure—like layer-2 rollups and real-world applications—would be crucial. These use cases help lock more ETH out of circulation, reducing supply and pushing prices higher.
Still, Xu warns that if any of these contributing factors slow down or stall, the rally could lose steam before hitting the five-digit mark. However, if all these drivers perform in unison, a surprise rally to $10,000 can’t be ruled out completely.
Sapien co-founder Trevor Koverko also commented on the possibility of Ether reaching such heights. While he acknowledges it’s an ambitious target, he believes it’s not impossible—especially if macroeconomic tailwinds remain favorable, ETF adoption widens, and the narrative around Ethereum continues to evolve. In his view, Ethereum is no longer just a speculative asset but is increasingly viewed as programmable digital infrastructure supporting the future of finance.
Adding to the optimistic outlook, crypto analyst Mikybull Crypto recently predicted that Ether’s price could climb as high as $7,000 to $10,000 based on momentum indicators like the RSI. This reflects growing confidence among market participants that Ethereum’s current rally is supported by strong fundamentals, not just hype.
In conclusion, Ethereum’s recent 47% price increase is backed by substantial institutional interest and favorable macro trends. While a leap to $10,000 may be a tall order, the current conditions suggest that a sharp pullback is unlikely. As long as ETF inflows continue and broader adoption of Ethereum technology persists, Ether’s upward trajectory may still have room to grow.
