Ethereum Surges 7% as Arthur Hayes Predicts $10,000 Price Target

Arthur Hayes, a co-founder of BitMEX, has made a significant prediction regarding the price of Ethereum (ETH). He believes that ETH could reach $10,000 in the current market cycle, which would set a new all-time high. This prediction comes at a time when there is renewed optimism in the crypto market, with ETH's price climbing past the $2,800 mark.

Hayes shared his prediction on a social media platform, stating, “Arise, Chikun, it’s time…$ETH = $10,000. Yachtzee.” Alongside this post, he included a chart that showed early signs of strength for ETH. The chart highlighted the ETH/BTC pair, suggesting a potential reversal from a two-year downtrend. This breakout signals growing market confidence in Hayes' prediction, which is often seen as a precursor to significant value appreciation.

If ETH maintains its recovery, the price could move toward the 0.055 BTC mark, more than doubling its current position. Hayes also addressed concerns about liquidity pressure from government bond issuance, stating that neither he nor the market is panicking. This is not the first time Hayes has set an ambitious target for ETH. In March, he predicted a $5,000 rally for ETH when it was trading at $2,100.

Currently, ETH has shown a clean breakout on the price chart, reaching as high as $3,028 in the early US hours on Friday. Although there is still room for more rally, the latest movement indicates that the bulls are taking over. At the time of writing, ETH was trading at $2,984, demonstrating a 7% increase over the past 24 hours.

In another significant development, ETH surpassed Bitcoin (BTC) in 24-hour futures volume, reaching $62.1 billion compared to Bitcoin’s $61.7 billion. This rare flip suggests a potential rotation in trader focus as they position ahead of possible ETH-specific catalysts. It also indicates that traders are betting on ETH’s price appreciation. The shift in traders’ appetite towards ETH coincides with a surge in open interest, which increased by 8.2% over the past 24 hours to $40.53 billion. This flipping also comes alongside increased demand from ETFs, ETH whales, and corporate buyers.

Discussions about Ethereum are gaining traction in the market, driven by positive ecosystem developments. Ethereum is attracting more attention from institutional players, with strong inflows into ETH Exchange-Traded Funds (ETFs) over the past week. BlackRock and Franklin Templeton have built tokenized funds on the Ethereum network, and Wall Street firms are shifting their focus towards ETH. Bit Digital recently closed its Bitcoin mining business to focus fully on Ethereum staking and treasury operations. Additionally, Sharplink Gaming added ETH to its corporate treasuries, mirroring earlier trends with Bitcoin. As of July 4, the company disclosed total holdings of 205,634 ETH, with 7,689 ETH purchased between June 28 and July 4.

Ethereum's Layer-2 ecosystem is also experiencing growth, with platforms like Base, Optimism, and Arbitrum designed to make the network faster and cheaper. This scalability supports DeFi, gaming, and tokenized asset applications, driving network usage. The tokenization of real-world assets has also gained popularity, with Ethereum as the primary platform. Strong on-chain metrics, growing institutional adoption, improved wallet experiences, and L2 scalability present a bullish case for Hayes' Ethereum price prediction to come to pass this year.