BitMEX co-founder predicts: Ethereum will reach $5,000
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BitMEX co-founder predicts: Ethereum will reach $5,000
"I sold my SOL and bought more ETH, ETH = $5,000."
Navigating Web3 tides with focused insightsBy Mary Liu, TechFlow
While other cryptocurrencies such as Solana (SOL) and Cardano (ADA) have shown strong performance, Ethereum (ETH) has relatively underperformed, struggling to break above the $2,500 mark.
However, Arthur Hayes, co-founder of BitMEX, is optimistic that Ethereum could soon reach a new all-time high. On social media platform X, he stated: "I sold SOL and bought more ETH. ETH = $5,000."
Previously, Hayes predicted Solana would reach $100—a forecast that proved remarkably accurate, with SOL recently rebounding to $99.60.
At the time of writing, Ethereum was trading at $2,270, down 2.7% over the past 24 hours.
Surging funding rates signal key level at $2,500
Ethereum’s funding rate has recently risen significantly, indicating broad trader expectations for further upside toward $2,500. Data from crypto derivatives tracker Coinglass shows ETH funding rates spiking to 0.045%, suggesting traders are bullish on the asset and willing to pay a premium to maintain long positions. This optimism can create a positive feedback loop, encouraging more traders to open long positions in anticipation of price increases.
Grayscale ETHE discount narrows
Ram Ahluwalia, CEO of Lumida Wealth, also offered a bullish perspective, suggesting ETH prices may recover losses and even outperform Bitcoin (BTC).
Ahluwalia noted that the discount on Grayscale’s Ethereum Trust (ETHE) has been steadily narrowing over recent months, rising 4% on December 22 alone.
According to Ahluwalia’s analysis, this development indicates institutional investors are increasingly buying Grayscale’s ETHE product to gain regulated exposure to ETH. As the ETHE discount disappears, marginal flows are likely to shift toward spot ETH for staking yield. Consequently, institutions are less likely to allocate additional capital into ETHE, as the “big gains” have already been realized.
Data from Stake Rewards shows that as of December 22, over 28.6 million ETH had been staked, offering a yield of 4.32%. Given the inverse relationship between staking volume and reward rates, the more users who stake their physical ETH, the lower the rewards or yields become.
As the ETHE discount vanishes, institutions or large players reallocating funds into ETH via the spot market could drive prices higher.
Technical indicators
Analyst Denys Serhiichuk noted that on the daily chart, ETH briefly broke through the resistance level at $2,331 on the hourly timeframe. If the closing price falls below this level, it may lead to further pullback toward the $2,300 zone.
Over a longer time frame, the close above the $2,392 resistance level will be crucial. If the price holds above $2,500, the upward trend may resume quickly toward the $2,500 region. From a medium-term perspective, a close near $2,400 is key for further recovery. If bulls regain control, they may continue testing the $2,500–$2,700 range.
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