FX168 Financial News (North America) — On Tuesday (May 28), Synfutures CEO Rachel Lin said that positive evaluations of spot Ether ETFs will drive up prices.
Lin anticipates that the price of Ether may reach $15,000 to $22,500 during this cycle, which means that the price of Ether will rise by more than 500% from current levels.
“The approval of the Ethereum ETF is one of the most important bullish events for Ethereum and the entire ecosystem,” Lin added. “Even if the ETH ETF didn't get as much attention as Bitcoin in the first few weeks and months, it still has the potential to attract significant capital in the long run.”
There are a few reasons to support her opinion, but overall, Ethereum is a strong competitor to Bitcoin.
First, Ethereum provides annual returns through staking; it is more than just a storage asset of value. The Ethereum blockchain is exposed to technologies such as DeFi and NFTs, and has more features than Bitcoin.
Lin said, “Bitcoin could become the Dow Jones index for crypto ETFs, while Ethereum becomes the Nasdaq index.”
Lin said that the established correlation between Bitcoin and Ether pricing will also bring room to the upside, and this correlation should actually tighten. This is not only because demand for tech cryptocurrencies continues to grow, but also because of a major supply shift in September 2022:
“In the previous 20 months, the supply of ETH increased from 114 million to 120 million, an increase of 5%. Today, 20 months have passed since this date, and the supply of ETH is still 120 million,” Lin said. “And Bitcoin's supply grew 2.9% over the same period.”
In this case, if Bitcoin successfully climbs to $150,000 this year (a forecast often published by Standard Chartered Bank), Ether could reach its target of $22,500. Currently, the asset is trading at over $68,000.
“Overall, I know the market is bullish on Ethereum right now, but it's not bullish enough. Now that the spot ETH ETF has been approved, all indicators suggest a massive bull market for ETH in the next few months,” Lin wrote.
Although it may be weeks before the new ETFs begin trading, their approval has sparked a wave of bullish sentiment, although few think the price will meet Lin's predictions. For example, Standard Chartered expects Ether to reach $8,000 by the end of this year.