Ether may hit $12K on Trump pump, Pectra update: Derive researcher
Ether's price could rise to $12,000 this year, a 257% increase from its current price due to Donald Trump's first year in office and key network reforms, said Dr. Sean Dawson, head of research at options firm DeFi Protocol Derive.
Dawson told Cointelegraph that there is a “bullish case” for Ether (ETH) to reach $12,000 by the end of the year.
At the time of publication, CoinMarketCap shows Ether trading at $3,361.
Ether is trading at $3,363 at the time of publication. Source: CoinMarketCap
All eyes on the Ethereum Pectra upgrade
The Ethereum Pectra upgrade, which is scheduled to launch in the first quarter of 2025, is expected to increase the efficiency and scalability of the network.
Dawson said Ethereum should expand into real-world assets (RWAs), more significant forays into exchange-traded funds (ETFs) and into new areas such as DePIN and AI agents.
Matt Hogan, head of research at Bitwise, recently told Cointelegraph that Ethereum and Base, Ethereum's layer-2 scale network, are “currently where a lot of AI agents are working.”
Dawson said the development of Layer 2 solutions with improved interoperability “could yield significant gains” and “further support the development of a regulatory environment under the Trump administration.”
The options market “tells a more sinister story.”
ETH has been consolidating around $3,500 since December 20, but Dawson says the options and derivatives market is “telling a more bullish story.”
“On Drive.xyz, there is a significant swing in call options, with open interest compared to 250% more calls. This shows a strong bullish sentiment as traders seek to gain significant leverage through these options.
However, Dawson warned that the price of Ether could drop below $2,000 in a “subversive issue”.
This could happen if the space ether ETF “fails to attract institutional interest, perhaps losing ground to the successful Solana ETF,” he said.
Related: The Crypto Bull Market Is Entering Its Final Stage: CryptoQuant
Ether's market share is being challenged by other layer-1 blockchains, which he warned could offer high risk and reward opportunities.
“In a bull market, investors often choose assets that have the potential to deliver spectacular returns,” Dawson said.
The number of long-term Ether holders increased steadily in 2024, but the number of Bitcoin (BTC) holders decreased last year as confidence grew that ETH would lead into the new year.
As of December 30, IntoTheBlock reported that the total percentage of Ether holding their tokens long-term has increased from 59% in January to 75% by the end of 2024.
Magazine: Get Crypto For 2025 Gaming Predictions, 50M Monthly Players Revenue: Web3 Gamer
This article is not intended for general information purposes and should not be construed as legal or investment advice. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of Cointelegraph.
