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DeFi Protocol Head of Research at Derive, Dr. Sean Dawson, has provided a bullish forecast for the price of Ethereum. He predicted that the second largest crypto could reach $12,000 and explained how the Pectra upgrade could contribute to the parabolic rally.
Ethereum to hit $12,000 thanks to Pectra upgrade and other factors
Dawson predicted that Ethereum could reach $12,000 by the end of the year thanks to the Pectra upgrade, Donald Trump’s presidency, increased adoption, and increased ETF inflows. According to the research analyst, this bullish scenario is possible if the Pectra Upgrade is successful. The upgrade aims to help scale the network and improve user experience.
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Given Donald Trump’s pro-crypto In his position, Dawson also believes that the US president-elect would create a regulatory-friendly environment, which would support Ethereum’s growth. For ETH to reach this $12,000 target, Dawson also said Ethereum needs to see broader adoption within the real-world assets (RWA) sector. The network is also expected to become a leading player in emerging sectors such as DePIN and AI agents.
THE Ethereum Exchange Traded Funds (ETF) also have a role to play for ETH to achieve this goal. Dawson mentioned that there should be greater cash flow into these funds. He warned that the failure of these funds to attract institutional interest could lead to a bearish situation for Ethereum.
In the bearish case, the research analyst predicted that Ethereum could fall as low as $2,000 due to a lack of inflows into the sector. ETH Spot ETF. He noted that this could happen if these funds lose ground to the successful launch of the Solana ETF. This undoubtedly remains a possibility, considering how Solana dominated last year in terms of network activity.
Dawson warned that other layer 1 networks are challenging Ethereum’s market share, although he added that this could provide higher risk and reward opportunities.
ETH Remains Bullish Despite Recent Market Downtrend
Cryptocurrency analysts have suggested that Ethereum still has a bullish outlook despite the market’s recent downtrend. In an article X, crypto analyst Moon Carl said that despite the recent drop, ETH is still trading in a symmetrical triangle over the daily period. The analyst added that if the support holds, a breakout with an upside target of $4,100 could be expected.
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Crypto analyst The Cryptomist also charted the path for Ethereum to reach a new absolute record (ATH). It highlighted a wide descending wedge, which played with symmetrical deviations. She added that ETH could retest the broken level, then reject support and insert a 4-hour oversold bullish divergence, then bounce back to a new ATH.
At the time of writing, the Ethereum price is trading at around $3,300, up over the last 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
