Ethereum (ETH) is experiencing one of its most impressive rallies of the year, taking the lead in the cryptocurrency market. After gaining 45% over the past month, ETH surged to $3,670 – its highest level since January.

📈 Ethereum Leading the Charge

While Bitcoin has remained relatively stable in recent weeks, Ethereum has taken the spotlight and is pushing the market upward. Expectations for continued growth in ETH are increasing. Although some investors are anticipating a possible slowdown or correction, experts remain optimistic.

Felix Xu, a partner at crypto hedge fund ZX Squared Capital, believes a sharp downturn is unlikely. He argues that such a drop would only occur under two key conditions:

🔹 a sudden halt in capital inflows to Ethereum spot ETFs

🔹 significant changes in the U.S. Federal Reserve’s monetary policy

“All the hard data coming in this week argues against a quick reversal.

Unless ETF inflows suddenly stop and the Fed simultaneously turns sharply hawkish, a sharp pullback like the 30% drop in October 2024 seems unlikely.

Xu highlights that the ETH held in spot ETFs is stored in cold wallets, reducing sell pressure and limiting supply. When this supply shock is combined with dovish expectations from the Fed and strong investor sentiment, the probability of a trend reversal remains low.

🚀 $10,000 Target: Bold Vision or Realistic Goal?

Market speculation suggests that Ethereum could reach $10,000 by the end of the year. Analysts say this would represent nearly a 190% increase in just five months, a pace ETH last achieved during the ICO mania in 2017 and the DeFi boom of 2020–2021.

However, Xu notes that such gains would require multiple bullish catalysts to align:

🔹 sustained ETF inflows

🔹 a stable and supportive monetary stance from the Fed

🔹 no major geopolitical or regulatory disruptions

“If these catalysts remain in play, a surprise breakout toward $10,000 can’t be ruled out,” Xu concluded.


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