This Analyst Backs ETH to Hit $6.5k Within Six Months

Analysts from the Denmark-based financial research company Steno Research have shared a new price prediction for Ether (ETH), the second-largest cryptocurrency by market cap ranking. According to the analysts’ report, ETH is expected to hit a trading price of $6,500 before the year’s end. Potential inflows drive the expectation of this price surge, which analysts expect in the spot Ethereum exchange-traded fund (ETF).

Analysts Project $20B Inflow into Spot ETF

The United States Securities and Exchange Commission (SEC) approved the spot Ethereum ETF last month, which implied the go-ahead for several investment companies to offer the Ether-backed ETF to local investors. However, these firms are yet to commence trading activities as the SEC still needs to comment on their S-1 filings. A final take-off is largely expected next month.

Steno Research’s senior analyst Mads Eberhardt believes the financial product will rake in as much as $15 billion to $20 billion within the first 12 months. The analyst further explained that this would trigger a ripple effect on ETH’s price, causing the projected price surge.

“We continue to forecast a net inflow between $15 billion and $20 billion in the first 12 months, even considering the outflow from the Grayscale Ethereum Trust (ETHE),” the analyst wrote.

Notably, Steno Research’s view is more bullish than those of Galaxy Research and Bitwise, who speculated that the investment vehicle could see a net inflow of $5 billion in the first five months and $15 billion within the first 18 months, respectively.

Steno Research’s report further stated that if its prediction on the ETF net inflow plays out well, the ether/bitcoin ratio will rise to 0.065, which would be a good thing for the second-leading cryptocurrency.

Can ETH Attain Such Feat?

ETH currently trades around $3,400, 52% lower than Steno’s $6,500 price projection. However, the prediction price is smaller than the cryptocurrency’s all-time high (ATH) of $4,870, reached in November 2021 during the last bull cycle.

Still, the outcome of the spot Ethereum ETF will likely have a huge impact on ETH’s value over time, just as it did with its BTC counterpart.