Analysts weigh in on potential price developments for Ethereum and Solana amidst Arthur Hayes' forecasts.
Arthur Hayes' Ethereum Prediction
BitMEX founder Arthur Hayes claimed Ethereum will reach $5,000 before Solana hits $300. He predicts a 150% rise for ETH and a 120% increase for SOL from current levels. Currently, Ethereum is trading at $2,060, while Solana is at $140.
Technical Signals for Ethereum
Technical analysis suggests potential for a bearish correction. The chart shows a classic 'bear flag' pattern, indicating potential further downside. A break below the $2,000 support level could lead to a decline towards $1,230. Additionally, there is a noted decrease in on-chain activity and average transaction fees.
Ethereum Price Depends on Network Demand
Ethereum prices have historically aligned with peaks in network demand. Yet, current low fee levels indicate declining network usage, potentially weakening ETH's recovery prospects despite bullish long-term predictions.
Despite Arthur Hayes' bullish forecasts, Ethereum must overcome technical hurdles and address inflationary tokenomics before a $5,000 price point becomes feasible.
