The cryptocurrency market is heating up day by day as positive signals from the macroeconomy combine with investor optimism, particularly regarding Ethereum (ETH). Arthur Hayes – co-founder of BitMEX exchange – recently made a bold prediction that Ethereum could soar to 20,000 USD, thanks to strong market momentum and a favorable monetary policy backdrop.

Ethereum Could Reach 10,000 – 20,000 USD in the Growth Cycle

In a recent interview, Arthur Hayes remarked that Ethereum is fully capable of reaching a price level of 10,000 – 20,000 USD before the current bullish cycle ends. He dismissed the view that ETH needs to return to test the 3,000 USD mark before breaking into new highs, citing that this cryptocurrency had previously surged past 4,000 USD.

According to market data, Ethereum has confirmed an important support zone at 4,109 USD after a strong increase in early the month. Analyst Donald Dean predicts that ETH could soon move towards 4,867 USD, even breaking its historical peak to reach 5,706 USD.

Hayes emphasizes that once Ethereum surpasses its previous peak, the upward momentum will become 'like empty space', facing almost no significant resistance until much higher price levels. He believes this confidence is reinforced by the active participation of crypto-native investment funds, which are raising billions of USD to allocate into ETH. Ethereum breaking into new price regions will attract even more investment flow, creating a chain reaction.

Moreover, Arthur Hayes also noted that the political-economic environment in the U.S. could become a major catalyst. He believes that any digital asset receiving support from U.S. President Donald Trump will have a chance to attract a massive speculative inflow, boosting the entire market.

When asked whether to choose Ethereum or Solana, Hayes believes both will grow strongly during the bull run, but he still leans towards Ethereum due to its investment scale and superior appeal.

Signals from the Fed: Monetary Policy is Softening

Alongside optimistic forecasts for Ethereum, U.S. monetary policy is also transitioning into a critical phase. Speaking at the Jackson Hole Conference, Federal Reserve Chairman Jerome Powell has issued more 'dovish' signals, indicating the possibility of interest rate cuts in the near future.

Powell acknowledges that the risk of inflation remains present, but the slowdown in job growth requires the Fed to tread carefully. He also noted that the impact of increased import taxes is causing consumer prices to rise higher, with the core PCE inflation index in July rising to 2.9%, a 10% increase compared to the previous month.

With the view that current policies have been sufficiently 'restrictive', Powell believes the Fed can 'proceed cautiously' in its next decisions. The market immediately interpreted this message as a preparation for the possibility of interest rate cuts at the upcoming FOMC meeting.

Conclusion: The Macro Context is Supporting Ethereum

The combination of strong price increase expectations from experts, capital inflow from investment funds, and the possibility of the Fed loosening monetary policy is creating an ideal environment for Ethereum to break out. If these factors continue to persist, the target of 10,000 – 20,000 USD for ETH may not be too far-fetched in this growth cycle.