Ethereum News Today: Ether Surges 43% in 30 Days Driven by ETF Inflows and Fed Policy

Ether has experienced a significant surge, reaching $3,600 on Thursday, and according to a hedge fund executive, this upward trend is likely to continue as long as two key macro conditions remain favorable. Felix Xu, a partner at crypto hedge fund ZX Squared Capital, stated that the recent data supports a sustained uptrend for Ether, making a rapid reversal unlikely.

One of the primary catalysts for Ether's price increase is the growing inflows into US spot Ether exchange-traded funds (ETFs). On Wednesday, these ETFs saw a record single-day inflow of $727 million, the highest since Ether ETF trading began in July 2024. Xu noted that the coins from these inflows are placed into cold custody, making them unavailable for immediate resale. This scarcity contributes to the upward pressure on Ether's price.

Another factor driving Ether's bullish momentum is the uncertainty surrounding the US Federal Reserve's policies. Xu highlighted that while June's Consumer Price Index (CPI) showed an increase, the ongoing pressure from US President Donald Trump on Federal Reserve Chair Jerome Powell is creating a dovish environment for risk assets, including crypto. Trump's calls for rate cuts by up to three percentage points add to the bullish sentiment, as policy risk remains tilted in favor of risk assets.

Xu emphasized that unless both ETF inflows suddenly halt and the Fed adopts a sharply hawkish stance simultaneously, the likelihood of a significant retracement, similar to the 30% drop 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 the impressive rally, Xu remains cautious about Ether reaching $10,000 by the end of the year. He pointed out that such a price target would require a 190% move in just over five months, a feat Ether has only achieved twice before—during the 2017 ICO frenzy and the 2020-21 DeFi boom. Xu believes that while a $10,000 price tag is a stretch, it is 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 similar sentiments, stating that while a $10,000 per Ether price tag is ambitious, it is not entirely off the table. Koverko noted that strong macro tailwinds, broader ETF adoption, and the narrative shift toward Ethereum being the backbone of the next financial system could drive Ether's price to such heights. He also mentioned that Ether is increasingly seen as a programmable digital asset rather than a speculative bet.

In summary, Ether's recent price surge is driven by strong ETF inflows and a dovish macro environment. While the chances of Ether hitting $10,000 by the end of the year are slim, the possibility remains open if several key factors align. The continued growth of ETF inflows, the addition of staking to Ether ETFs, a shift in investor sentiment, and wider adoption of Ethereum as a network could all contribute to a potential price surge. However, any stall in these factors could limit Ether's rally well below the $10,000 mark.