Ethereum has entered bull mode, but what should be expected next! A sharp correction or a big rally towards the 10 thousand Dollar target? Analyst answered!

Bitcoin (BTC) after a week of breaking records, this week gave way to the Ethereum rise. ETH made a significant attack during the week and the rise in the last month approached %45.

ETH reached $3,670 with this attack, marking its highest level since January.

While the rise in Ethereum and the altcoins led by it is expected to continue, an analyst stated that a sharp correction for ETH is not expected soon after its 43% rise in the last month.

Felix Xu, partner at the crypto hedge fund ZX Squared Capital, stated that the rapid rise of Ethereum could continue and that a sharp pullback is unlikely if two key macro conditions persist.

At this point, the analyst stated that as long as the ETF inflows into Ethereum do not stop and the FED does not change its policy, a rapid and sharp pullback is unlikely.

"All the hard data that has come this week is opposing a quick turnaround.

As long as ETF inflows do not suddenly stop and the FED does not simultaneously display a hawkish stance, the likelihood of a sharp pullback like the 30% drop in October 2024 seems low.

The analyst emphasized that the ETH acquired in spot ETH ETFs is locked in cold storage, which reduces selling pressure and tightens the current supply. "Moreover, when this contraction in ETH supply is combined with dovish policy expectations from the FED and strong investor sentiment, it creates a low probability for any sudden trend reversal in ETH," he said.

Can Ethereum Reach 10 Thousand Dollars?

While the market generally expects Ethereum to reach $10,000 by the end of this year, the analyst took a cautious approach to this situation.

The analyst stated that $10,000 is ambitious but not impossible:

"A target of 10 thousand dollars means a movement of 190% in just over five months."

This is something that ETH only achieved during the 2017 ICO craze and the 2020-21 DeFi boom.

However, the possibility of a surprise rise towards 10 thousand dollars cannot be ignored if multiple rise catalysts work simultaneously and ETF inflows continue throughout the year.