Pectra Update Could Push Ethereum to $12k Riding on ‘Trump’s Effects’
Dawson highlighted the need for increased integration of real-world assets (RWAs), and substantial inflows into exchange-traded funds (ETFs).
A report from Dr. Sean Dawson’s analysis, says the Pectra Update posits a highly bullish scenario for Ethereum (ETH), predicting a price surge to $12,000 by the end of 2025.
Moreover, this prediction represents a 257% increase from its current trading price of approximately $3,361 (as of January 8th, 2025). This optimistic forecast is predicated on a confluence of factors, notably the anticipated success of Ethereum’s Pectra upgrade and a perceived regulatory-friendly environment under the Trump administration.
Pectra Upgrade to Push Ethereum Surge
The Pectra upgrade, scheduled for launch in the first quarter of 2025, is designed to enhance Ethereum’s efficiency and scalability significantly. This improvement is crucial for fostering broader adoption, a key element in Dawson’s bullish prediction.
Furthermore, Dawson highlighted the need for increased integration of real-world assets (RWAs), and substantial inflows into exchange-traded funds (ETFs). He expanded utility within emerging sectors such as decentralized physical infrastructure (DePIN) and AI agents.
Moreover, this perspective aligns with observations from other market analysts; Matt Hougan, Bitwise’s head of research, recently noted the significant presence of AI agents operating on Ethereum and its layer-2 scaling network, Base.
Dawson emphasizes the potential for substantial gains driven by the growth of layer-2 solutions and their improved interoperability. However, he acknowledges that a regulatory environment conducive to cryptocurrency growth is paramount. He explicitly cites a “regulatory-friendly environment under the Trump administration” as a supporting factor for this optimistic outlook.
Experts Analysis Predict Ether Bullish
While ETH has exhibited price consolidation around the $3,500 mark since December 20th, 2024, Dawson argues that a closer examination of the options and derivatives market reveals a more bullish undercurrent. He cites a significant skew towards call options on Derive.xyz, indicating a strong bullish sentiment amongst traders.
Additionally, this heightened demand for call options, representing a 250% increase in open interest compared to put options, suggests a prevailing expectation of price appreciation.
However, Dawson’s analysis also incorporates a bearish counterpoint. He acknowledges the possibility of Ether’s price falling below $2,000. This scenario hinges on the failure of a spot Ether ETF to attract substantial institutional interest, potentially losing market share to a successful Solana ETF.
Furthermore, he notes the intensifying competition from other layer-1 blockchains, each presenting unique risk-reward profiles. The inherent preference of investors for assets with high growth potential during bull markets further complicates the prediction.
The long-term outlook for Ether appears strengthened by a significant increase in the number of long-term holders throughout 2024, a trend contrasting with a decline in long-term Bitcoin holders during the same period. Data from IntoTheBlock reveals a notable increase in the percentage of Ether holders exhibiting long-term commitment, rising from 59% in January 2024 to 75% by year-end. This indicates a growing confidence in ETH’s future prospects.
