Ethereum (ETH) has failed to perform as expected, lagging behind Bitcoin as of 2024, but analysts say this could change. Sean Dawson, head of research at DeFi protocol Derive, said he expects Ethereum to rise to $12,000 in 2024.
Dawson predicts that the rise in ETH’s price could be due to excitement around the first year of Donald Trump’s presidency and the impact of Pectra, a major network upgrade. He also expects Ethereum to see a strong rally in 2025, noting that if the Pectra update is successful, ETH could reach $12,000 by the end of the year, with the regulatory-friendly environment under the Trump administration further supporting this growth.
Data on Ethereum’s Rise
Dawson says Ethereum has been consolidating at $3,500 since December 20, but the options and derivatives markets are giving a strong signal that ETH could be on the rise. According to analysis on the Derive.xyz platform, there are 250% more call options traded than put options in terms of open interest, indicating that investors are looking for upward leverage and have strong bullish expectations.
This strengthens investors’ expectations that the price of ETH will move upwards, and according to Dawson, if ETH reaches $12,000 by the end of 2025, it would indicate an increase of approximately 257% above the current price level.
Bear Market Scenario: Risks Under $2,000
However, despite bullish expectations for Ethereum, Dawson warns that ETH could fall below $2,000 in the event of a bear market transition. This negative scenario could play out under particularly challenging conditions, such as spot Ethereum ETFs failing to attract institutional investors and Solana losing market share with a successful ETF launch.