Felix Xu pointed out the increasing inflows into U.S. spot Ether exchange-traded funds (ETFs) as a significant catalyst for the ongoing bullish trend in Ether's price, noting the inflow of $727 million on Wednesday, the largest single-day inflow since Ether ETF trading began in July 2024.
"Those coins go directly into cold custody and, by definition, are not available for immediate resale," Xu stated. He also highlighted the uncertainty surrounding the U.S. Federal Reserve as another bullish catalyst for Ether.
"Macroeconomic conditions are mixed, not toxic," he added. Xu explained that while the Consumer Price Index (CPI) for June rose slightly, the constant pressure from U.S. President Donald Trump on Federal Reserve Chairman Jerome Powell is increasingly bullish for cryptocurrencies.
"Trump continues to urge the Fed to cut rates by up to three percentage points, a reminder that political risk still leans towards a moderate stance in favor of risk assets," he said.
"Unless both ETF inflows stop abruptly and the Fed adopts a strongly restrictive stance at the same time, the likelihood of a total retracement like the 30% crash in October 2024 seems low."
However, Xu states that the chances of Ether reaching $10,000 by the end of this year are slim, despite forecasts from several analysts.
"A target of $10,000 implies a move of 190% in just over five months, something that ETH has only achieved twice, during the ICO frenzy of 2017 and the DeFi boom of 2020-21," Xu said.
