The cryptocurrency market is becoming increasingly vibrant each day as positive signals from the macroeconomy combine with investor optimism, especially regarding Ethereum (ETH). Arthur Hayes - co-founder of the BitMEX exchange - recently made a bold prediction that Ethereum could surge strongly to $20,000, thanks to the strong market momentum and favorable monetary policy context.

Ethereum Could Reach $10,000 - $20,000 During the Growth Cycle

In a recent interview, Arthur Hayes emphasized that Ethereum is fully capable of reaching prices between $10,000 - $20,000 before the current bullish cycle ends. He dismissed the viewpoint that ETH needs to return to test the $3,000 level before breaking new price levels, criticizing that this cryptocurrency had previously surged strongly above $4,000.

According to market data, Ethereum has confirmed a crucial support zone at $4,109 after a strong surge earlier in the month. Analyst Donald Dean predicts that ETH could soon head towards $4,867, potentially breaking its historical high to reach $5,706.

Hayes emphasizes that when Ethereum breaks through its previous peak, the price increase will become 'like empty space', facing little significant resistance until higher price levels. He believes this confidence is bolstered by the active participation of cryptocurrency investment funds, which have raised billions of dollars to allocate to ETH. Ethereum breaking into new price ranges will attract more investment flow, creating a chain reaction.

Furthermore, Arthur Hayes also noted that the political-economic environment in the U.S. could become a significant driving factor. He believes that any digital asset receiving support from U.S. President Donald Trump will have the opportunity to attract a large speculative capital influx, boosting the entire market.

When asked whether to choose Ethereum or Solana, Hayes believes both will surge strongly in the bullish cycle, but he still leans towards Ethereum due to its scale of investment and superior appeal.

Signals from the Fed: Monetary Policy is Easing

Alongside the optimistic forecast for Ethereum, the U.S. monetary policy is also transitioning into a significant phase. Speaking at the Jackson Hole Conference, Fed Chair Jerome Powell has sent out 'more accommodating' signals, indicating the possibility of interest rate cuts in the near future.

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

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

Conclusion: The overall context is supporting Ethereum

The combination of strong bullish expectations from experts, capital inflows from investment funds, and the Fed's potential loosening of monetary policy is creating an ideal environment for Ethereum to break out. If these factors continue to exist, the target of $10,000 - $20,000 for ETH may not be too far-fetched in this growth cycle.

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