Ethereum’s rally past the $3,600 mark shows little sign of slowing down, and the bullish momentum may hold as long as key macro conditions persist, according to a leading crypto hedge fund executive.
Felix Xu, a partner at ZX Squared Capital, says strong ETF inflows and dovish signals from the Federal Reserve are setting the stage for Ether’s sustained gains.
Strong ETF Inflows Bolster Price Stability
Xu pointed to Wednesday’s $727 million in spot Ether ETF inflows — the largest since ETF trading for Ether began in July 2024 — as a critical driver for ETH’s current price strength.
“These coins go straight into cold custody and are, by definition, not available for immediate resale,” he noted.
This effectively reduces liquid supply and adds to upward price pressure.
Ether was trading at $3,609 at the time of Xu’s comments, up more than 43% over the past month, according to Nansen.
Federal Reserve Pressure May Support Further Upside
Beyond ETFs, Xu believes the broader macroeconomic environment is favorable for Ethereum and other risk assets.
While June’s CPI came in slightly higher, he pointed to political pressure on the Fed from President Donald Trump as a bullish factor.
“Trump keeps urging the Fed to slash rates by up to three percentage points, a reminder that policy risk still tilts dovish for risk assets,” Xu said.
Unless ETF inflows abruptly stop and the Fed simultaneously turns aggressively hawkish, he argued, a repeat of last October’s 30% correction appears unlikely.
Can Ether Hit $10K? Experts Say It’s Possible, But Unlikely Soon
Despite growing optimism, Xu is cautious about the increasingly popular $10,000 price target for Ether.
“A $10K target implies a 190% move in a little over five months — something ETH has achieved only twice, during the 2017 ICO frenzy and the 2020–21 DeFi boom,” he explained.
“That kind of move is a stretch.”
Still, he acknowledged that if staking is added to the ETF structure, investor sentiment improves, and Ethereum adoption accelerates, the goal becomes more realistic.
“Accelerating real-world use of the Ethereum stack — restaking, booming layer-2 rollups, and fresh application verticals — could tighten ETH supply and fuel further gains,” Xu said.
Other Voices See $10K as Ambitious but Achievable
Trevor Koverko, co-founder of Sapien, echoed similar views.
“It’s an ambitious move, but not impossible to assume that ETH could even approach a $10k valuation if we continue to see strong macro tailwinds, broader ETF adoption, and the continued narrative shift toward Ethereum being the backbone of the next financial system,” Koverko said.
“ETH feels a lot less like a speculative bet now versus a programmable digital asset.”
Analyst Mikybull Crypto has predicted Ether could rise to between $7,000 and $10,000 based on technical indicators such as the Relative Strength Index (RSI).