Ethereum (ETH) Price Prediction: ETH May Rally to $10,000 in 2022 as US Election Looms

While the world's second-biggest cryptocurrency is trading almost 40% below its March high, Ether may be about to reach as high as $10,000 in the coming months.

Second only to Bitcoin in terms of market capitalisation, Ether price has largely lagged behind its bigger rival in 2023.

While the world’s second-biggest cryptocurrency is trading almost 40% below its March high, several factors suggest that Ether may be poised to reach as high as $10,000 in the coming months.

Standard Chartered made that prediction in a recent research note as the cryptocurrency lags behind Bitcoin, which trades just 5% below its record $73,800 high from March.

However, three big factors suggest that things may be about to change.

The US election

Analysts widely expect the US election next week to spark a fresh crypto rally as both candidates have made pro-crypto overtures.

However, a win by Donald Trump is seen as more bullish than a Kamala Harris victory as the former president is viewed as being more aligned with the industry.

Geoffrey Kendrick, Standard Chartered’s global head of digital assets research, said he expected Ether to jump some 300% to $10,000 by the end of next year if Trump recaptures the White House.

A win by Harris would see a less dramatic rise to $7,000, he predicted.

Ethereum futures

Another bullish sign, according to analysts, is the sentiment among traders in the Ethereum futures market.

Futures are a type of speculative investment contract that allows people to bet on the future price of an asset.

ShayanBTC, a pseudonymous contributor to data firm CryptoQuant, noted that sentiment among futures traders is turning bullish, based on the Ether funding rate metric, which measures the aggression of buyers versus sellers in the futures market.

If the metric is positive, then traders’ outlook is bullish. The opposite applies if the metric is negative.

“Currently, the funding rates are in positive territory with a slight upward trend, indicating that futures traders have shifted towards a more optimistic outlook on Ethereum,” ShayanBTC said in a recent note.

They cautioned that while the rates are rising, they have not yet “reached the intensity required to fuel a significant breakout.”

Institutional uptake

Finally, US spot Ethereum exchange-traded funds have so far failed to capture traders’ attention to the same degree as Bitcoin ETFs.

The investment vehicles allow traders to easily gain exposure to the asset via asset managers and brokerages, without the need to venture into the realm of crypto exchanges and self-custody.

Since launching in January, spot Bitcoin ETFs have seen total net inflows of over $24 billion, according to SoSoValue. Meanwhile, Ethereum ETFs have seen total net outflows of over $480 million since launching in July.

Shauli Rejwan, managing partner at Masterkey.VC, suggested that institutional interest could pick up in the coming months.

“We’ll start seeing Wall Street interest materialise in roughly six to 10 months,” he told DL News. “Or maybe the bull run will accelerate their decision.”

Is Ether overvalued?

Others are not as bullish.

In a recent blog, CoinShares analyst Matthew Kimmell argued that Ethereum is now overvalued.

The March Dencun upgrade made layer 2 settlements significantly cheaper, but it also reduced the fees users pay to use the main blockchain, Kimmell said.

CoinShares previously predicted that the price of Ether could reach over $8,000 in five years time. However, the unexpected drop in fees has rendered that estimate “a miserable over calculation,” Kimmell wrote.

Crypto market movers

What we’re reading

Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.