The Ethereum price forecast is gaining momentum as market enthusiasm intersects with evolving monetary policy signals. BitMEX co-founder Arthur Hayes anticipates that Ethereum might reach $20,000, crediting robust market dynamics and favorable macro factors. This audacious prediction comes as Federal Reserve Chair Jerome Powell shifts to a more accommodating stance, suggesting potential future rate reductions.
Ethereum Price Expected to Reach Five Figures
Hayes has made a daring Ethereum price prediction, suggesting that the second-largest cryptocurrency could rise as high as $10,000 or even $20,000 before the cycle concludes. In a recent interview, the BitMEX co-founder rejected the idea that Ethereum would need to revisit the $3,000 mark before climbing to new heights, instead referencing its earlier surge above $4,000.
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Interestingly, Ethereum has confirmed support at $4,109 following a strong surge earlier this month. Consequently, analysts like Donald Dean forecast that ETH could rise to $4,867—or even achieve a new all-time high around $5,706.
As for Hayes, he disclosed that he has re-entered the market, repurchasing Ethereum after taking profits when the asset surpassed $4,000. The BitMEX founder emphasized that once Ethereum exceeds its previous peak, the trajectory upwards would be akin to “a gap of air,” with minimal resistance until significantly higher valuations. He argued that this belief is strengthened by the fact that crypto-focused firms are actively raising funds to invest in ETH.
Hayes contended that these firms’ capacity to secure funding will only grow as Ethereum enters unexplored price levels. His forecasts of a $10,000 to $20,000 price range are linked to the political and economic context in the US. The BitMEX co-founder posited that any digital asset backed by US President Donald Trump would likely see significant speculative inflows, thus enhancing the wider market.
When asked which cryptocurrency he would primarily choose between Ethereum and Solana, Hayes indicated that both digital assets would gain value during the upcoming bull market. Nevertheless, he stated a preference for Ethereum, noting that the level of capital pursuing ETH made it a more appealing investment.
Powell’s Speech Signals Softer Fed Policy Direction
As discussions around Ethereum’s next price target unfold, US monetary policy seems to be transitioning into a critical phase. Recent reports following the Fed Chair’s speech at Jackson Hole suggest Powell may be hinting at the potential for a rate cut.
During his address, Powell acknowledged the changing risk landscape, recognizing that, while inflationary pressures endure, the deceleration in employment growth necessitates careful evaluation. He also pointed out the impact of rising tariffs, which are beginning to manifest in consumer prices, with core PCE inflation climbing to 2.9% in July—a 10% rise from the prior month.
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The Fed chair reiterated that, given policy is already in a restrictive phase, the central bank can “proceed cautiously.” However, his remarks left the possibility for a change in approach open, with markets widely interpreting them as setting the stage for a rate cut at the forthcoming FOMC meeting.
Featured image from Unsplash, chart from TradingView
