Ethereum Soars 8% in Two Days as Institutional Adoption Grows

BitMEX co-founder Arthur Hayes has recently predicted that Ethereum will soar to $10,000. This prediction is supported by several factors, including institutional interest and bullish technical indicators. Hayes believes that Ethereum is transitioning from being a tool for developers and DeFi enthusiasts to a store of value for corporations, similar to Bitcoin.

One of the key drivers behind Hayes' prediction is the growing trend of companies adopting Ethereum in their treasury strategies. For instance, GameSquare, a Nasdaq-listed company, announced plans to allocate $100 million to Ethereum as part of its treasury management plan. This move was funded by offering over 8.4 million public shares to raise around $8 million in initial capital. Additionally, SharpLink Gaming recently became the largest Ethereum treasury holder by adding $19.2 million worth of ETH to its holdings.

Despite concerns about the Ethereum Foundation selling 10,000 ETH in an over-the-counter deal, the context reveals that the buyer was Sharplink Gaming Inc., which plans to stake and restake the entire purchase worth around $25.7 million. This further validates Ethereum's status as a long-term asset rather than a speculative one.

Technical indicators also support the bullish outlook for Ethereum. Currently trading at around $3,005, Ethereum has broken past the psychologically significant $3,000 barrier. In the past two days, ETH rose nearly 8%, and over the last week, it has surged more than 7.8%. Analyst Crypto Goos recently shared a bullish outlook, calling ETH’s recent movement a “buy signal”.

While reaching $10,000 would require Ethereum to more than triple from its current price, this is not unprecedented. Ethereum rose from around $90 in March 2020 to nearly $4,900 by November 2021, registering a more than 50x increase in under two years. This historical performance supports the possibility of Ethereum reaching Hayes' predicted price target.