Ethereum Poised for Major Rally Arthur Hayes Envisions $5,000 Peak in 2024
Summary
-
Arthur Hayes’ Bullish ETH Prediction: BitMEX co-founder Arthur Hayes forecasts Ethereum (ETH) could surge to 4,000-5,000 by year-end, potentially hitting a new all-time high, viewing its current “most hated L1” status as a contrarian opportunity for outperformance.
-
Supporting Catalysts for Growth: This optimistic outlook is supported by factors like Ethereum’s significant stablecoin market share, the growth of layer-2 networks (which use ETH for gas, driving demand), and ETH’s recent positive price momentum (over 45% gain in a month).
-
Wider Analyst Agreement: Other financial institutions, like Bernstein and Standard Chartered, share a bullish sentiment. Standard Chartered projects ETH at 4,000 by 2025 ( 7,500 by 2029) and anticipates ETH outperforming Solana in the coming years due to Solana’s current scaling challenges.
-
Context of Recovery and Ecosystem Shifts: Ethereum’s potential rally follows a period of underperformance and community critiques, leading to recent strategic shifts within its ecosystem and the Ethereum Foundation, and requires an ~88% price increase to surpass its previous all-time high.
Prominent Investor Cites Contrarian Sentiment and Growth Catalysts
Arthur Hayes, the co-founder of BitMEX and a notable figure in cryptocurrency investment, projects a substantial appreciation for Ethereum (ETH) within the current year, potentially reaching a price of $5,000.
Such a surge would not only represent a near doubling of its current value but also establish a new all-time high for the second-largest cryptocurrency.
This bullish forecast arrives despite Ethereum’s recent relative underperformance compared to competing layer-1 blockchains like Bitcoin and Solana.
“I think ETH could go to $4,000 or $5,000 this year,” Hayes stated during an interview with Decrypt at the Bitcoin 2025 conference in Las Vegas.
He emphasized a contrarian investment thesis: “I think it’s the most hated layer-1, and usually you want to be in the most hated asset in a turn of the cycle, so I think ETH could outperform.”
This prediction for Ethereum aligns with Hayes’ broader optimistic outlook, including a long-term target of $1 million for Bitcoin by 2028.
Shifting Momentum and Analyst Endorsements
While enthusiasm for Ethereum as an investment has been somewhat muted over the past year, particularly with Solana’s ascent, there are growing indications of renewed momentum.
ETH has recently seen a significant uplift, climbing over 45% in the last month to approximately $2,646.
Market analysts are also noting positive indicators.
A research note from investment firm Bernstein in mid-May highlighted the role of stablecoins in rekindling interest in their underlying networks, a relevant factor for Ethereum, which hosts approximately 51% of the total minted stablecoin supply.
Bernstein further underscored the growth potential stemming from Ethereum’s layer-2 scaling solutions, pointing to Robinhood’s acquisition of WonderFi (which operates an Ethereum layer-2) as evidence.
“Brokers such as Robinhood could potentially offer tokenized equities on their blockchain, built on layer-2 Ethereum.
Layer-2 chains use ETH for gas fees as underlying currency, thus helping drive distribution and demand for ETH,” the Bernstein analysts elaborated.
Further reinforcing this bullish sentiment, options markets for Ethereum have shown increased optimism.
Additionally, investment analysts at Standard Chartered, led by Head of Digital Assets Geoffrey Kendrick, recently proposed a price target of $4,000 for ETH by 2025, extending to $7,500 by 2029.
Standard Chartered also suggested that Solana might trail Ethereum’s performance over the next two to three years due to scaling challenges that currently limit Solana’s application beyond its current meme coin focus.
Their analysis projects the Solana-Ethereum price ratio to increasingly favor Ethereum through 2028.
Path to a New All-Time High
To achieve Hayes’ upper projection of $5,000 and surpass its 2021 peak of $4,878, Ethereum would need to gain nearly 88% from its present valuation.
Ethereum has a track record of making substantial price gains within short periods, as demonstrated earlier this month following the successful implementation of the Pectra upgrade.
Ecosystem Dynamics and Foundation Shifts
Ethereum’s recent price recovery follows a period of discontent within its community regarding its performance and broader ecosystem developments.
Earlier in the year, Ethereum co-founder Vitalik Buterin adopted a more assertive public stance, which some developers characterized as a “wartime” approach.
Subsequently, the Ethereum Foundation has undergone several leadership and strategic adjustments.
Decrypt indicated that further insights from Arthur Hayes regarding Bitcoin’s prospects and the wider crypto market, shared during the Bitcoin 2025 interview, would be forthcoming.
*Disclaimer*: We at Bitcoinleef.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice and viewers should consult their financial advisors before investing.
Wallets