Ethereum has long been praised for its strong fundamentals and extensive ecosystem. Despite Solana gaining momentum, Arthur Hayes believes Ethereum will hit $5,000 before Solana reaches $300. Explore the key factors driving Ether to new heights.
The co-founder of BitMEX, Arthur Hayes, has made a bold prediction for Ethereum. According to him, the second-largest cryptocurrency by market capitalization is expected to reach $5,000 before Solana (SOL) hits the $300 mark. This statement has sparked debates on Ethereum’s ability to surpass Solana in the coming months.
A key factor that could drive Ethereum’s growth is the upcoming upgrade called Dencun (EIP-4844). This improvement aims to increase network speed, enhance scalability, and reduce transaction costs, potentially boosting demand for ETH significantly.
Additionally, the growing interest of institutional investors in Ethereum exchange-traded funds (ETFs) on Ethereum is also helping drive the cryptocurrency’s price towards $5,000.
Arthur Hayes’ bold prediction comes as Ethereum experiences a slight price retreat. Currently, ETH has recovered from over a 1% drop, trading around $2,072.
Ethereum notably broke the $2,069 resistance for the first time in two weeks yesterday after bouncing off a significant support level last Friday. If ETH fails to hold above $2,069, it could drop towards $1,818. However, a strong breakthrough could push it towards $2,267.
Meanwhile, the relative strength index (RSI) is below the neutral zone, but showing a bullish trend, indicating that the bearish momentum is weakening.
On the other hand, Solana (SOL) has gained momentum. Its price is up 0.5% today, trading at $144.4. Recent bullish factors have supported its growth, and analysts predict SOL could reach $165 by the end of the month.
If Bitcoin manages to rise above $90,000, ETH will likely go up to $2,331, corresponding to its 50-day moving average. If it holds above, the next crucial levels for ETH are in the $2,840 range (red zone), which represents a significant liquidity area and the 100 and 200-day moving averages.
Although Ethereum has experienced some recent stagnation, upcoming network improvements and the growing appeal of Ethereum ETFs and staking could propel the cryptocurrency to new highs.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
