Ether Surges 43% in 30 Days as ETF Inflows and Fed Uncertainty Fuel Rally

Ether has experienced a significant surge, reaching $3,600 on Thursday, and according to a hedge fund executive, this rally is unlikely to reverse as long as two key macro conditions persist. Felix Xu, a partner at crypto hedge fund ZX Squared Capital, stated that the recent data supports the continuation of Ether's price uptrend. He highlighted the growing inflows into US spot Ether exchange-traded funds (ETFs) as a major driver, noting that Wednesday saw the largest single-day inflow of $727 million since Ether ETF trading began in July 2024. These inflows, which go directly into cold custody, are not immediately available for resale, contributing to the bullish sentiment.

Xu also pointed to the uncertainty surrounding the US Federal Reserve as another bullish factor for Ether. He noted that while June’s Consumer Price Index (CPI) increased, the ongoing pressure from US President Donald Trump on Federal Reserve Chair Jerome Powell is increasingly favorable for crypto. Trump has been urging the Fed to slash rates by up to three percentage points, indicating that policy risk still leans dovish for risk assets. Xu emphasized that unless ETF inflows suddenly halt and the Fed adopts a sharply hawkish stance simultaneously, the likelihood of a full retrace, similar to the 30% wash-out in October 2024, is low.

At the time of publication, Ether was trading at $3,609, marking a 43% increase over the past 30 days. Despite this impressive performance, Xu believes the chances of Ether reaching $10,000 by the end of the year are slim. He explained that achieving a $10,000 target would require a 190% move in just over five months, a feat that Ether has only accomplished twice before, during the 2017 ICO frenzy and the 2020-21 DeFi boom. Xu acknowledged that while such a move is ambitious, it remains possible if strong ETF inflows continue, staking is added to the Ether ETF, investor sentiment shifts to a more risk-on environment, and Ethereum gains wider adoption as a network.

Trevor Koverko, co-founder of Sapien, echoed a similar sentiment, stating that while a $10,000 per Ether price tag is speculative, it is not entirely off the table. He noted that if strong macro tailwinds, broader ETF adoption, and the narrative shift toward Ethereum being the backbone of the next financial system continue, Ether could approach a $10,000 valuation. Koverko added that Ether feels more like a programmable digital asset now rather than a speculative bet. Additionally, crypto trader Mikybull Crypto forecasted that Ether’s price could top between $7,000 and $10,000, based on the RSI index.