- Rachel Lin, CEO of SynFutures, said she expects Ethereum price to rise from $15,000 to $22,500 this cycle.
- She believes demand factors and a slump in new supply will lead to higher prices for the coin.
- “Now that the spot ETH ETF has been approved, all indicators point to a massive bull run for ETH over the coming months,” she said.
According to Rachel Lin, CEO of SynFutures, last week’s positive verdict on a spot Ethereum ETF will likely be the catalyst for a price rise.
In a commentary published after the fund's approval on Thursday, Lin predicted Ethereum could reach $15,000 to $22,500 this cycle, which would represent a 503% increase from current price levels of around $3,890.
“The approval of an Ethereum ETF is one of the most significant bullish events for Ethereum and the entire ecosystem,” Lin wrote, adding that “even if an ETH ETF does not garner as much support as Bitcoin in the first few weeks and months, it will likely attract surprisingly large amounts of capital in the long term.”
There are several reasons that support her claim, but the general idea is that Ethereum is a strong rival to Bitcoin.
Firstly, Ethereum offers annual yields through staking, making it more than just a store of value asset. The Ethereum blockchain is exposed to technologies such as DeFi and NFTs, giving it more functionality than Bitcoin.
“Bitcoin could become the Dow Jones of crypto ETFs and Ethereum the Nasdaq,” Lin said.
Lin noted that a correlation between Bitcoin and Ethereum prices has been established and that this correlation should indeed become closer, due not only to increased demand for tech cryptocurrencies but also to the massive supply shift that occurred in September 2022.
“In the 20 months leading up to that date, the supply of ETH increased from 114 million to 120 million, an increase of 5%. Today, 20 months after that date, the supply of ETH remains the same at 120 million,” Lin said. “Meanwhile, Bitcoin's supply has increased by 2.9% over the same period.”
In that case, Ethereum could reach the $22,500 target if Bitcoin rises to $150,000 this year, as predicted by Standard Chartered Bank's oft-published forecast. Ethereum is currently trading at just over $68,000.
“Overall, we know that the market is bullish on Ethereum right now, but not bullish enough. Now that the spot ETH ETF has been approved, all indicators point to a massive bull run for ETH in the coming months,” Lin wrote.
While it could be several weeks before the new ETF begins trading, the approval has stoked bullish expectations, although few expect the price to go as high as Lin's predictions. Standard Chartered Bank, for example, expects Ethereum to hit $8,000 by the end of the year.
