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DeFi protocol Derive’s head of research, Dr. Sean Dawson, has made a bullish prediction for the Ethereum price. He predicted that the second largest cryptocurrency could reach $12,000 and explained how the Pectra upgrade could contribute to the parabolic rally.
Ethereum Reaches $12,000 Thanks to Pectra Upgrade and Other Factors
Dawson predicted that Ethereum could reach $12,000 by the end of the year thanks to the Pectra upgrade, Donald Trump’s presidency, increased adoption and a surge in ETF inflows. According to the research analyst, this bullish case is possible if the Pectra upgrade is successful. The upgrade is intended to help scale the network and improve the user experience.
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Datum Donald Trump’s pro-crypto From his perspective, Dawson is also confident that the newly elected US President would create a regulatory-friendly environment, which would support further growth for Ethereum. For ETH to reach this $12,000 goal, Dawson also said Ethereum needs to see broader adoption within the real-world assets (RWA) industry. The network also aims to become a top player in emerging sectors such as DePIN and AI agents.
The Ethereum exchange traded funds (ETFs) also play a role in achieving this goal for ETH. Dawson said there needs to be greater inflows into these funds. He warned that the inability of these funds to attract institutional interest could lead to a bearish situation for Ethereum.
For the bearish case, the research analyst predicted that Ethereum could fall to $2,000 due to a lack of inflows into the market. Discover ETH ETFs. He noted that this could happen if these funds lose ground due to a successful launch of the Solana ETF. This undoubtedly remains a possibility, given how Solana dominated in terms of networking activity last year.
Dawson warned that other layer 1 networks are challenging Ethereum’s market share, although he added that this could offer higher risk and reward opportunities.
ETH is still bullish despite the recent downward market trend
Crypto analysts have suggested that Ethereum still has a bullish outlook despite the recent market downtrend. In an X post, crypto analyst Moon Carl stated that despite the recent dump, ETH is still trading within a symmetrical triangle on the daily time frame. The analyst added that if support holds, a breakout with a bullish target at $4,100 could be expected.
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Crypto analyst The Cryptomist also charted a path for Ethereum to reach a new path all-time high (ATH). She emphasized a large falling wedge, which played a role in symmetrical deviations. She added that ETH could retest the broken level, then decline to enter a 4-hour oversold bullish divergence and then bounce to a new ATH.
At the time of writing, the Ethereum price is trading around $3,300, up in the past 24 hours, according to facts from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com