- Ethereum made a strong recovery after the May 6-7 Fed Meeting due to positive developments in the macroeconomic situation.
- In June, there could be more recovery if the US Fed cuts interest rates by 0.5%, otherwise, slow progress will continue.
- In the slow growth mode, Ethereum could cross $4000 by the end of 2025.
- In the fast growth mode, it could make a new ATH by December.
Improving Macroeconomic Situation
Since the start of the year, the crypto markets have seen a worsening liquidity crisis amid a looming world war and a trade conflict centered on the USA. Very little could be done by governments in this matter because the inflation in most parts of the world was already high due to post-covid stimulus.
Lately, several banks have cut their interest rates to supply the markets with ample liquidity. Among major banks, the European Central Bank and the Reserve Bank of India played a crucial role in liquidity provisioning amid a near-hawkish stance by the Federal Reserve of the USA.
In its last meeting, the US Fed decided to hold interest rates steady due to fears of triggering another inflation in the markets. It had kept rates stable at a time when the US President Donald Trump, too, had requested the Fed to consider cutting down rates for the sake of the economy.
A rate cut is now expected in the markets in the upcoming June Federal Reserve Meeting.
How High Could Ethereum Go?
2025
In a low bullish scenario where the June 2025 Fed Meeting results in a 0.25% rate cut, we might see Ethereum cross $3000 in June, and by the end of the year, it may cross $4000.
In a moderately bullish scenario, where the interest rate cut in June is around 0.5%, we expect Ethereum to cross $6000 by the end of the year.
2030
In the next half decade, we expect Ethereum ETFs to resolve all its regulatory troubles like staking and we also expect Ethereum to finish its scaling and security patches (including sharding, decentralization, quantum resistance, and other troubleshootings).
Considering these developments would be finished by 2030, we expect Ethereum to cross $15,000 by the end of 2030. This price estimate is also supported by Ethereum’s value as a Triple Point Asset.
Further, there is also a historical correlation with Bitcoin which has fallen out of phase due to excessive bearishness in Ethereum. We expect this synchronous relationship to be established soon in the future.
