Can Ethereum Hit $12,000 in 2025 Thanks to Trump?
The year 2025 has the potential to change everything for Ether (ETH), currently the second-largest cryptocurrency by market cap. Dr. Sean Dawson, who leads research at Derive, predicts that Ether could surge to a remarkable $12,000 this year.
This figure represents a stunning increase of 257% from its current value. Two main factors are driving this hopeful outlook: the supportive environment under a Trump administration and the upcoming Pectra upgrade.
A Trump administration could implement regulations that favor cryptocurrencies, creating a space where Ether can flourish. This supportive regulatory framework is likely to attract institutional investors, leading to a significant influx of capital into ETH.
On the technological front, the Pectra upgrade, planned for the first quarter of 2025, plays a critical role in Ether's future. This upgrade aims to boost the efficiency and scalability of the Ethereum network. A more robust network positions Ethereum to compete effectively in the crowded crypto market. However, for this potential rise to materialize, there needs to be broader acceptance of real-world assets (RWA) and a substantial increase in exchange-traded fund (ETF) inflows.
The current sentiment in the crypto options market also points to optimism. There is a significant demand for call options, with 250% more open interest in calls than in puts. This demand shows that traders are eager to benefit from Ethereum’s expected growth.
However, there are risks to consider. Dr. Dawson warns that if interest in Ether ETFs does not materialize, the price of ETH could drop below $2,000. Ethereum also faces stiff competition from other layer-1 blockchains, which may provide better risk-reward opportunities for investors.
The developments in 2025 are set to be critical for Ethereum. Both macroeconomic trends and technological advancements will influence its future. The combination of the Pectra update and a pro-crypto stance from the government could become the driving forces that elevate ETH to unprecedented levels.