Price predictions for Ethereum (ETH) are becoming more subdued and realistic, expecting a revisit of the $4,000 level in the coming months. Funds remain more conservative compared to influencers.
Predictions for the price action of Ethereum (ETH) range between a lower bound of $5,500 and a bullish scenario of $16,000. Funds are more realistic and conservative, betting on the lower range, while influencers are more bullish.
The predictions arrive at a time when ETH still trades close to its all-time low against Bitcoin (BTC), hovering at 0.027 BTC. In dollar terms, ETH is back to the $2,500 range despite expectations for a quick hike back to $4,000.
After a negative performance in January, ETH traders bet on historically positive February results. However, ETH has been down over 22% for the month to date, while showing a few bullish factors that can help recover the losses.
ETH predictions spark hopes of price recovery
The third prediction is by Bitwise, with 85.67K ETH under management. Bitwise predicts ETH can climb to $7,000 in 2025. The fund is up 2,681% since inception, but down over 22% in the year to date, similar to other ETF.
Some of the influencer predictions are based on the previous ETH bull run. However, the 2021 rally saw more optimism for the Ethereum ecosystem, while currently, liquidity and traffic are shifting to Solana.
ETH abandons ultra-sound money narrative
The current production levels of new ETH reflect the slowdown of token burns. This resulted in a higher inflation of 0.72%, once again producing 16,805 new ETH each week. At this rate, the Ethereum chain will create over 937K new ETH in 12 months.
Activity on Ethereum has also slowed down. Currently, ETH transfers and token transactions are the biggest gas burner, and even the Tether (USDT) smart contract has slowed down, burning around 71 ETH every 24 hours. Blob fees are also lower, burning just 54 ETH a day, down from 65 ETH a few days ago.