Markets
Ethereum Hype Spurs Crypto Rally as VanEck Projects $22,000 ETH Price Target
Investor sentiment towards Ethereum has turned bullish after the SEC granted initial approval to identify ETH ETFs.
Crypto markets rose on Thursday morning amid bullish sentiment around Ethereum and anticipation of a key US jobs report.
Leading the rally, Bitcoin surpassed $71,000, Ethereum rose 1.3% and Solana remained stable. Polkadot’s native DOT token is up 1%, according to CoinGecko data.
VanEck Raises Ether Price Target
Ethereum ETF issuer VanEck raised its price target for Ethereum, projecting that the world’s second-largest cryptocurrency could reach $22,000 by 2030.
In a June 5th blog publishVanEck head of digital asset research Matthew Sigel raised his 2030 Ether projections from $11,800 last year.
“We anticipate that spot ether ETFs are in the approval phase for trading on US exchanges,” the analyst said. “This development would allow financial advisors and institutional investors to hold this unique asset… and benefit from the pricing and liquidity advantages characteristic of ETFs.”
Sigel’s projection is based on $66 billion in predicted free cash flows generated by Ethereum.
ETH flows continue
Ethereum experienced a “turnaround in sentiment” after the US Securities and Exchange Commission (SEC) approved form 19b-4. According to CoinSharesEthereum recorded inflows of $33.5 million in the week ending May 31.
The reversal comes after Ethereum had a 10-week run of outflows totaling $200 million.
In terms of Ethereum futures open interest (OI), the CoinGlass shows an increase after the approval of Ether ETFs by the SEC. As of May 23, outstanding interest was about $15 billion. As of today, open interest for Ethereum futures stands at $17.09 billion, an increase of 13.2%.
Wall Street is keeping an eye on the next US jobs report
Investors are now awaiting Friday’s report on May nonfarm payrolls.
The anticipation follows the European Central Bank’s decision to cut interest rates on Thursday for the first time since 2019. Employment data is expected to influence the Federal Reserve’s next policy decision, although most expectations are tilted to maintain current rates.
US stocks were relatively flat on Thursday. The Dow Jones Industrial Average rose slightly by 0.12%, while the S&P 500 and Nasdaq Composite remained flat.